A powerful sugar cartel is being blamed for the sharp rise in sugar prices across Pakistan, sparking serious concern among consumers and officials. Investigations show the cartel has taken advantage of export permissions and manipulated production costs to earn billions in extra profits.
Between 2015 and 2020, 26 sugar mills received Rs4.12 billion in government subsidies to export sugar. Despite this support, local sugar prices remained high. From 2018 to 2020, the sugar cartel allegedly falsified production costs, causing an estimated Rs110 billion loss to the public. In the same period, mill owners reportedly gained Rs53 billion in additional profits and avoided Rs18 billion in taxes.
Since January 2025, sugar prices have jumped by Rs60 per kilogram. The government had set the price at Rs140 in March, but it rose to Rs170 and now stands at Rs200 per kilogram after the export of 750,000 tons of sugar.
In response, the government has approved the import of 500,000 tons of sugar to help stabilize prices. The International Monetary Fund (IMF) has also called on Pakistan to eliminate export subsidies and let market forces determine prices in the sugar sector.
Authorities uncovered major discrepancies in export records, especially concerning shipments to Afghanistan. While sugar mills claimed to have exported 2.35 million metric tons, Afghan officials reported only 1.5 million metric tons. Records for 778,000 metric tons remain unaccounted for.
Officials say they are working to dismantle the sugar cartel and restore market balance. The plan includes strict oversight, regulatory reforms, and transparent pricing policies to protect consumers and ensure fair trade practices.
The government has approved the import of 500,000 tons of sugar to help stabilize rising prices across the country. For full details, read the official report here: Government Approves Import of 500,000 Tons of Sugar to Stabilize Prices.
