Sugar prices have dropped significantly in recent weeks as the crushing season gains momentum. In Punjab, prices stand at 15,300–15,500 per quintal, while in Sindh it stands at 15,600-15700 per quintal. The sharp decline is mainly driven by the start of the sugarcane crushing season, which has increased the overall supply of sugar in the market. With supply rising faster than demand, prices have adjusted downward, creating a more balanced market environment.
As the crop size improves and production accelerates through December, sugar prices may decline even further. This continued downward movement could benefit both the wholesale and retail markets, offering welcome relief to consumers already facing high inflation.
A recent survey shows that all 41 sugar mills in Punjab have officially begun crushing operations. So far, these mills have processed 3,871,240 metric tons of sugarcane and produced 283,935 metric tons of sugar. Encouraged by strong returns this year, more mills have entered the market. Over 85 sugar mills are expected to operate this season, compared to 77 mills last year, adding even more supply pressure.
Forward market trends also point to a downward movement, with new sugar for January trading at 13,900–14,000 per quintal. This indicates that the market may soften further in the coming days. However, with Ramadan approaching and demand increasing sharply during that month, prices may not fall back to last year’s level of around 120 rupees per kilogram.
Economic analysts say that if the government controls imports properly and ensures strong local production, sugar prices can stay stable in the coming months. If prices remain low, it will help reduce overall inflation and give relief to consumers. With sugar being the essential commodity its availability at lower price will become easier and more affordable for people across the country.
