In its bid to stabilise and bring down soaring sugar prices, the federal government has decided to import raw sugar (shakkar).

The import of raw sugar, as per a press release issued by the government, would help bring down sugar prices and would also increase future sugar production, as it could be refined and converted into sugar locally.

The development comes as sugar prices in the country have witnessed a significant increase in recent months with the price reaching the nationwide average to Rs150.43 per kilogramme last month.

Since the week ending November 28, 2024, sugar prices have increased by Rs18.58 per kg, reflecting a 14.3% surge. A year ago, in February 2024, the average price had stood at Rs144.47 per kg, marking an annual rise of approximately Rs6 per kg.

The continuous price hike coincides with the government’s decision to approve large-scale sugar exports.

Between June and October 2024, authorities had permitted the export of 750,000 metric tonnes, including a final approval of 500,000 metric tonnes in October.

Market analysts attribute the persistent rise to supply constraints and export-driven demand.

Despite official price notifications, reports suggest that sugar is being sold at even higher rates in various cities, intensifying financial pressure on lower and middle-income consumers.

In Karachi, sugar is being sold in the retail market at a price ranging from Rs170 to Rs180 per kilogram, the rate in the wholesale market stands at Rs166 per kilogram and a 50-kg sugar bag is being sold at Rs8,300.

Meanwhile, in Quetta sugar price in the retail market has experienced a hike of Rs15 per kilogram and is now being sold at Rs180 per kilogram as opposed to the previous Rs165 per kilogram.

In the wholesale market, the commodity is being sold at Rs175 per kilogram, said market sources.