Pakistan’s sugar industry is set to see a significant financial boost as the government has approved a Rs19 per kilogram increase in the price of sugar, benefiting sugar millers across the country, according to an official announcement reported by The Express Tribune. The decision, finalized after negotiations with the Pakistan Sugar Mills Association (PSMA), marks a 13.5% rise in the ex-factory price, now set at Rs159 per kilogram, with the retail price fixed at Rs164 per kilogram for a one-month period.
The price hike, effective immediately, reverses the government’s earlier stance from last year, when it had capped the ex-factory price at Rs140 and the retail price at Rs145 per kilogram, despite allowing sugar exports. The new pricing structure provides an additional Rs2.8 billion in revenue for sugar mills, as highlighted by Finance Minister Ishaq Dar, who noted the adjustment was made in consultation with the PSMA—an entity previously criticized by Pakistan’s antitrust watchdog for operating as a cartel.
The decision comes amid ongoing disputes between the government and sugar millers over pricing and supply stability. According to the Pakistan Bureau of Statistics, the per-kilogram price of sugar had already risen to an average of Rs172 by last Friday—Rs27 higher than the same period last year—reflecting inflationary pressures and export-driven demand. The government’s move to allow this price increase is seen as a concession to millers, who have warned of potential supply cuts if pressured to maintain lower prices.
However, the price hike has raised concerns among consumers and policymakers, who fear it could exacerbate inflation and burden households already grappling with rising costs. Industry experts suggest the adjustment aims to incentivize millers to maintain domestic supply while capitalizing on international market opportunities, but critics argue it prioritizes millers’ profits over public welfare.
The PSMA welcomed the decision, stating it would help stabilize the sector and ensure sustainable operations. Meanwhile, the government has committed to monitoring market dynamics to prevent undue profiteering, with plans to review the pricing structure after the one-month period.
For the latest updates on sugar pricing, industry developments, and government policies, follow official statements from the PSMA, the Ministry of Industries, and national economic news outlets.
