Despite a bumper sugarcane crop this year, the country is facing an artificial sugar crisis as nearly 90% of sugar mills remain non-operational. Industry sources reveal that if mills begin 100% crushing, the price of sugar could fall to Rs. 120 per kg, providing much-needed relief to consumers.
Sources told Tijarat News that even with record sugarcane production this season, the sugar mafia has created a manipulated shortage. Only 10% of sugar mills have started crushing, while the remaining 90% have not begun operations despite the start of the crushing season. According to insiders, full-scale crushing of the ready crop would bring sugar prices down significantly.
They further claimed that sugarcane production this year is 25% higher than last year. Yet, despite bumper production and additional imports, sugar continues to be sold at inflated prices. In Karachi, ex-mill sugar prices have climbed from Rs. 175 to Rs. 185 per kg, while wholesale rates have reached Rs. 187 per kg and retail prices up to Rs. 200 per kg. In Punjab and Khyber Pakhtunkhwa, sugar is being sold between Rs. 200 and Rs. 210 per kg.
Sources added that by not initiating 100% crushing, sugar mills are discouraging farmers—despite having agreed to purchase sugarcane at Rs. 350 to Rs. 400 per maund.
Public circles have urged the government to take strict action against cartelization and hold those responsible accountable, as creating an artificial sugar crisis is effectively robbing both consumers and farmers.
