The price of sugar in Pakistan has reached a record high of Rs200 per kilogram. Investigations suggest that a powerful sugar cartel is behind this sharp increase. Official documents reveal that certain sugar mill owners have manipulated the market to their benefit, while the public continues to suffer.
Since January 2025, sugar prices have risen by Rs60 per kg. In March, the government had fixed the price at Rs140 per kg. However, after allowing the export of 750,000 tons of sugar, the domestic market faced a shortage. Prices then surged to Rs170 and eventually hit Rs200 per kg.
The sugar cartel is accused of exploiting export permissions and inflating production costs. From 2015 to 2020, 26 sugar mills received Rs4.12 billion in subsidies to export 400,000 metric tons of sugar. Despite these subsidies, local prices remained unchecked.
There are also serious questions surrounding the accuracy of sugar export records. Mill owners claimed to have exported 2.35 million metric tons of sugar to Afghanistan. But the Afghan government only recorded 1.5 million metric tons. That leaves 778,000 metric tons unaccounted for.
The Federal Investigation Agency (FIA) has also looked into past cases of price manipulation. From 2018 to 2020, 38 sugar mills were accused of working together to create artificial price hikes. These actions allegedly cost Pakistani consumers Rs110 billion. Reports say mill owners made an extra Rs53 billion in profits and avoided paying Rs18 billion in corporate taxes.
To bring prices down, the government now plans to import 500,000 tons of sugar. The goal is to increase supply and stabilize the market. At the same time, the IMF has continued to pressure Pakistan to end subsidies on sugar exports and let the market regulate itself.
The role of the sugar cartel remains a key issue as authorities search for long-term solutions to protect consumers and ensure fair trade in the sugar industry.
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