
Anti-hoarding push puts brakes on runaway sugar price
According to Abdul Rauf Ibrahim, Chairman of the Wholesale Grocers Association, the retail price of sugar has dropped from Rs200 to Rs195/kg in recent days. Similarly, the wholesale price has fallen from Rs185 to a range of Rs178-180/kg.
Rauf attributed the price correction to growing scrutiny over speculative hoarding. He claimed that around 2.6 million tons of sugar are currently being held back from the market for profiteering and smuggling.
Rauf also cautioned against proposed sugar imports, saying that domestic production is sufficient to meet local demand. He warned that importing sugar at this stage would be economically detrimental, potentially costing the country more than $265 million in foreign exchange at a time of severe fiscal strain.

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The Federal Board of Revenue (FBR) has not released any audits on sugar mill compliance or tax contribution. No action has been taken against mills for openly breaching their agreement with the government. When institutions with legal mandates refuse to act, the market ceases to be a marketplace. It becomes a racket. This isn't new. But it's become more brazen. The previous PTI-led government also faced sugar price hike in 2020. However, its response was markedly different. Then prime minister Imran Khan ordered a wide-ranging inquiry, involving the FIA, SECP, FBR, and other agencies. The investigation looked into hoarding, tax fraud, price manipulation, and the misuse of subsidies. Importantly, it didn't shy away from naming allies or investigating politically connected individuals within PTI itself like Jahangir Tareen. The inquiry report was published in full. While it triggered backlash, it also marked a rare moment where the state asserted its regulatory role over an entrenched industrial elite. The investigation was abandoned and charges dropped when the PTI government was removed. What we are seeing now is the opposite. Instead of confronting the sugar mafia, the current government has aligned itself with it. Instead of enforcing transparency, it has shielded its members from scrutiny. At every step, decisions have served the interests of the few at the expense of many. This has real human costs. Sugar is not just a luxury good. It is a daily essential for households and a critical input for small businesses. Rising sugar prices drive up food inflation, burden already stretched family budgets, and hurt bakeries, tea stalls, and street vendors across the country. When a government facilitates price spiral through weak enforcement and preferential trade decisions, it doesn't just fail the economy. 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Export and import decisions, especially for essentials like sugar, should not be made behind closed doors. They must be based on evidence, presented in parliament, and subjected to public scrutiny. Import licences should be granted through open bidding, and their recipients disclosed proactively. In the digital age, there's no excuse for opacity. A transparent digital dashboard that tracks sugar from mills to wholesalers to retailers would make it harder for hoarders and profiteers to operate undetected. It would also empower consumers and watchdog groups with real-time data. Finally, subsidies and tax exemptions must be subjected to rigorous review. No tax waiver or import concession should be granted without a clear, documented public interest rationale. Otherwise, they will continue to be used as vehicles for elite enrichment. The sugar industry has become a symbol of how deeply elite capture runs in Pakistan. But it can also become a turning point. If the state can confront the sugar mafia – not with hollow deals but with real accountability – it can begin to rebuild public trust and economic fairness. If it cannot, the crisis will return. Prices may dip briefly, but the profiteering will continue. This is not just about sugar. It is about who the system is designed to serve and who it leaves behind. The writer is a graduate of the University of British Columbia