In an effort to stabilize soaring sugar prices, the Pakistani government has announced plans to import raw sugar (shakkar). This decision comes shortly after the country exported half a million tonnes of sugar, following assurances from industry stakeholders to maintain domestic prices between Rs145 and Rs150 per kilogram. However, recent market observations indicate that prices have surged to over Rs180 per kg in the last ten days.
The government believes that importing raw sugar will help increase future sugar production, as it can be refined and converted into sugar locally. However, analysts express skepticism about the effectiveness of this measure, citing the time-consuming nature of the import process, which could take 10 to 15 weeks.
They argue that the issue is administrative rather than a supply problem, emphasizing the need for stricter enforcement of industry commitments to stabilize prices.
