In a move touted by the government as a "big relief" for the public, the federal authorities and sugar industry have reached an agreement to fix the ex-mill price of sugar at Rs165 per kilogram, the Ministry of National Food Security announced on Monday.
According to the ministry, all provincial governments have been directed to ensure the availability of sugar to consumers at this revised rate.
However, despite claims of relief, the newly agreed price marks a noticeable increase compared to previous rates, raising eyebrows among consumers and economic observers alike.
The fixed ex-mill price has gone up by Rs25 per kg from the Rs140/kg rate set in June last year and is Rs6 per kg higher than the Rs159/kg announced by the government just four months ago in March 2025. The price is also notably higher than the level fixed when sugar export permissions were granted.
Interestingly, this price hike comes even after the government allowed sugar imports — a step typically taken to stabilize domestic prices. Last week, the federal cabinet permitted the import of up to 500,000 metric tons of sugar to tackle the expected shortfall and control market volatility. Prior to that, the government had initiated approvals for the export of 750,000 metric tons of sugar between June and October 2024.
While officials argue that the new price agreement ensures sugar’s availability and streamlines market stability, critics argue that calling it “relief” is misleading, especially when the end price has risen instead of falling. Consumer groups have demanded greater transparency in pricing decisions and urged regulators to ensure that retail prices remain within reach for the average household.
The Ministry of Food Security maintains that provincial administrations will monitor sugar distribution to prevent hoarding and profiteering, promising that the benefits of this agreement will "trickle down" to consumers. However, whether this relief translates into actual affordability remains to be seen on the ground.