On March 20, 2025, Pakistan’s government established the retail sugar price at Rs164 per kilogram, a 13% increase from the previous rate set during the authorization of exporting 600,000 metric tons of sugar. This adjustment allows sugar millers to gain higher revenues from both domestic and international markets.
A 10-member committee, led by Deputy Prime Minister Ishaq Dar, collaborated with the Pakistan Sugar Mills Association (PSMA) to determine the new sugar prices. The ex-factory price is set at Rs 159 per kilogram, while the retail price is Rs 164 per kilogram, both reflecting a Rs19 per kilogram increase from previous rates.
As of the previous week, sugar prices averaged Rs 172 per kilogram, marking a Rs27 per kilogram increase compared to the same period last year. Between July and February of the current fiscal year, Pakistan exported approximately 757,779 metric tons of sugar, a significant rise from 33,101 metric tons during the same period the previous year. This surge resulted in $407 million in export earnings, an 1,831% increase from the prior fiscal year.
To monitor sugar prices and provide recommendations, a subcommittee, chaired by Minister of Food Rana Tanveer Hussain, has been formed. Additionally, to ensure affordability, sugar will be sold at Rs 130 per kilogram in 274 special bazaars nationwide. Sugar mills are also mandated to commence the crushing season by November, with potential penalties for non-compliance.
The government’s price-fixing approach, developed in consultation with the PSMA—an entity previously accused of cartelization—may lead to market distortions. The Competition Commission of Pakistan (CCP) has been actively working to prevent cartelization in the sugar industry and may view the current price-setting mechanism as counterproductive. This price adjustment reflects the government’s effort to balance the interests of consumers and producers amid fluctuating market dynamics and export activities.
