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Pakistan's Sugar Crisis Deepens: Why Prices Hit Rs 200 Amid Govt Inaction

Pakistan is facing another major sugar crisis with prices skyrocketing to Rs 200 per kilogram. The government has decided not to force sugar mills to begin crushing on schedule, allowing each mill to set its own start date. This decision comes amid IMF restrictions that prevent the government from fixing sugarcane procurement prices. Critics warn this approach protects mill owners' interests while consumers bear the burden of rising inflation.

Key Points: Pakistan Sugar Prices Soar as Govt Bows to Mill Owners

  • Sugar prices hit Rs 200/kg despite official rate of Rs 181
  • Government allows mills to set own crushing start dates
  • Transport fares increase 25% on key routes pushing costs higher
  • IMF restrictions prevent government from fixing sugarcane procurement prices
2 min read

Pakistan's sugar mess deepens: Govt bows to mill owners, consumers pay the price

Sugar prices surge to Rs 200/kg as government allows mills to delay crushing season, protecting mill owners while consumers face inflation crisis.

"The government would not compel sugar mills to begin crushing on schedule - Rana Tanveer Hussain"

Rawalpindi, October 24

After a wave of vegetable price shocks, Pakistan is now staring at a fresh sugar crisis, with prices in the open market surging once again to Pakistani Rs 200 per kilogram. Sugar officially priced at Pakistani Rs 181 per kg has become virtually impossible to find at retail shops across major urban centres, as reported by The Express Tribune.

According to The Express Tribune, the traders stated that the government-controlled rate has become irrelevant, as no shop in Rawalpindi or nearby areas is selling sugar at the official price.

Wholesale markets tell a similar story, with the price of a 50-kilogram bag of sugar skyrocketing to Pakistani Rs 10,000, a steep rise from recent weeks.

The hike in sugar costs has been compounded by a 25 per cent increase in transport fares by goods carriers on routes connecting Karachi, Rawalpindi, and Peshawar, pushing consumer prices even higher.

The crisis was also a key focus in a recent session of the National Assembly Standing Committee on National Food Security and Research.

Federal Minister for Food Security Rana Tanveer Hussain informed lawmakers that the government would not compel sugar mills to begin crushing on schedule. Instead, he said, each mill would decide its own start date, whether in early or mid-November.

The minister further explained that under Pakistan's agreement with the IMF, the government is restricted from fixing the procurement price of sugarcane, which last year ranged between Pakistani Rs 400 and Pakistani Rs 700 per maund (38 kg). While Punjab's sugarcane crop will be ready by November 1, mills are reportedly delaying crushing to maximise sugar recovery, as highlighted by The Express Tribune.

Insiders revealed that the government had earlier reached an understanding with sugar mills to start crushing in the first week of November. But by backing away from that commitment, authorities have effectively safeguarded the mill owners' financial interests at the expense of farmers.

Critics argue that this leniency will result in heavy losses for growers, as their crops lose weight and quality and delay the next planting season. The traders now fear that without immediate action, Pakistan's sugar prices will continue to rise, intensifying inflation and deepening the financial strain on an already struggling population, as reported by The Express Tribune.

- ANI

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Reader Comments

P
Priya S
The farmers are always the ones who get caught in the middle. First they struggle with input costs, then with delayed payments, and now their crops are losing value. This is heartbreaking for the agricultural community.
A
Arjun K
IMF restrictions are becoming an excuse for poor governance. Every country has to balance international commitments with domestic needs. The government should have planned better for this situation.
S
Sarah B
As someone who follows regional economics, this pattern is concerning. When basic food items become unaffordable, it creates social unrest. Hope the authorities take corrective measures soon.
V
Vikram M
Sugar at Rs 200 per kg is unimaginable for ordinary families. This will affect everything from daily chai to festival sweets. The timing before winter festivals makes it even worse for common people.
M
Michael C
While I understand the need for economic reforms, essential commodities like sugar, wheat, and rice should have some price stability mechanisms. This crisis shows what happens when market forces are given complete control.

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