Tuesday, December 23, 2025
Tuesday, December 23, 2025
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HomePakistanImports Drive Down Sugar Prices in Pakistan

Imports Drive Down Sugar Prices in Pakistan

According to the latest data from the Pakistan Bureau of Statistics (PBS), the government imported 200,000 tons of sugar in October, worth Rs 31.62 billion, to stabilize rising domestic prices. From July to October 2025, Pakistan’s total sugar imports reached 231,390 tons, amounting to Rs 36.97 billion.

The federal cabinet had earlier approved the import of 500,000 tons of sugar on July 4, 2025, in response to rapidly increasing local prices. At the beginning of July, sugar retailed at Rs 196 per kg, but prices surged to Rs 229 per kg by the end of the month. This sharp rise prompted the government to intervene through large-scale imports to ease supply pressure.

Despite government concerns, the Pakistan Sugar Mills Association (PSMA) opposed the decision, claiming that imports were unnecessary and would disrupt the market. However, the federal government moved ahead and authorized the Trading Corporation of Pakistan (TCP) to carry out official imports. To ensure quick and cost-effective procurement, the government also granted tax exemptions on sugar imports.

The newly imported sugar stabilized the prices, improve market availability, and prevent further inflationary pressure.

Sugar Production Outlook for 2025–26

The latest agricultural forecast predicts that Pakistan will produce 7.5 million tons of sugar this year. A 9% increase in sugarcane cultivation area has boosted expectations of up to a 15% increase in sugar production compared to last year.

Pakistan’s monthly sugar consumption stands at around 540,000 tons, while daily consumption has reached nearly 18,000 tons. The cultivated area under sugarcane expanded slightly—rising from 1.19 million hectares to 1.213 million hectares—supporting a higher production forecast. As a result, sugar output is projected to rise to 7.5 million tons, compared with 6.8 million tons produced last year.

With improved production and strategic imports, Pakistan aims to stabilize the domestic sugar market and prevent further price spikes in the months ahead.

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