Sugar prices have surged to Rs210 per kilogram due to the government’s inability to control the market, while the refusal to set a support price for sugarcane has deepened tensions between growers and sugar mill owners. Despite the import of around 350,000 tonnes of sugar, retail prices continue to rise.
According to details, even after the federal government imported approximately 350,000 tonnes of sugar, prices have not decreased. A standoff has emerged between sugarcane growers and mill owners regarding the crop’s price, which is expected to delay crushing and potentially push sugar prices even higher. Notably, growers have already demanded a 25% increase in the wheat support price, while the government—under IMF conditions—has refused to set a support price for sugarcane, just as it did for wheat.
Market sources reported that the government is supplying imported sugar to wholesale markets at Rs165.20 per kg. Wholesale rates stand between Rs167 and Rs168 per kg, meaning consumers should ideally be paying around Rs170 per kg. However, due to the inefficiency of district administrations, retailers are selling the same imported sugar for no less than Rs180 per kg.
Interestingly, most consumers are reluctant to buy imported sugar because it is powdery, less sweet, and generally cheaper than granulated sugar in the global market. Sources added that sugar mill owners still have nearly one month’s stock of sugar, with granulated sugar being sold between Rs190 and Rs210 per kg in the local market.
They further stated that imported sugar is primarily being supplied to manufacturers of beverages, bakery items, coffee, and related products rather than household consumers. As a result, the massive import has failed to stabilize retail prices.
During last week’s Sugar Advisory Board meeting, government officials clarified that, similar to wheat and paddy, the support price for sugarcane will no longer be set by the government and will instead be determined by market forces. Growers are displeased with this decision and are expected to launch protests in the coming days.
According to sources, growers are firm that the previous rate of Rs450 per maund is no longer acceptable due to increased production costs. They have now decided not to supply sugarcane to mills for less than Rs600 per maund. They have been advised to delay harvesting and apply half a bag of urea per acre with irrigation to prevent the crop from drying, allowing them to wait for a better price.
Sugarcane crushing should have started on October 30, but out of 34 operational mills in Sindh, only eight have fired up their boilers. Since crushing can begin only a week after boilers are activated, the complete start of crushing by November 25 seems unlikely. If growers withhold supply, mill owners may use it as justification to further delay operations.
Mill owners believe that small farmers, in particular, cannot afford prolonged delays in harvesting and will eventually be compelled to sell at lower prices. Meanwhile, agriculture department sources noted that Sindh’s sugarcane production is down by approximately 30% compared to last season. This reduced output, combined with higher sugarcane prices, is expected to push sugar prices even higher in the coming months.
