Dear sugar

Once again, Pakistan finds itself caught in the by-now-familiar battle between the government and the sugar industry, a spectacle that has played out time and again with no real resolution. Sugar, once promised at subsidised rates at government stalls, has now disappeared from these spaces, forcing consumers to purchase it at exorbitant prices in the open market. In major cities like Peshawar, Lahore, Rawalpindi and Islamabad, sugar prices have risen to Rs170 per kilogram, up from Rs160 before Ramazan. Karachi has seen an even steeper jump, from Rs145 to Rs180 per kilogram. This sudden surge, industry insiders claim, is a direct consequence of the government's approval of sugar exports. Wholesalers and profiteers have allegedly capitalised on this decision, hoarding supplies under the guise of exports to engineer artificial shortages and maximise profits. The root of the issue remains the government’s consistent reluctance to challenge the sugar cartels -- powerful mill owners with deep political connections. These cartels have long dictated market trends, manipulating supply to drive up prices and then pushing for unnecessary imports to further their gains. The irony is inescapable: Pakistan exports sugar only to import it back at inflated rates, burdening the economy and consumers alike.

Reports indicate that the government has once again opted to import raw sugar in an attempt to stabilise prices -- an illogical move considering that the authorities had already sanctioned exports. This cycle of selling sugar to foreign buyers only to repurchase it from them exemplifies the flawed governance that enables these crises. While officials argue that the price increase may be a reaction to the government's crackdown on tax evasion in the sugar industry -- leading to a 54 per cent increase in tax collection—there is little justification for allowing cartels to dictate market conditions in retaliation. Amid this tug-of-war between profiteers and the state, ordinary citizens remain the biggest victims. For many households, particularly during Ramazan, sugar is an essential item, used to prepare energy-boosting drinks and meals for iftar. The ongoing price surge leaves many struggling to afford even the most basic food items. With sugar consumption already high in Pakistan, often serving as a cheap source of energy for low-income groups, the skyrocketing costs exacerbate food insecurity for millions.

This is not an isolated incident; the sugar industry has repeatedly defied government regulations, proving that political influence often trumps rule of law. If the state continues to allow powerful cartels to manipulate markets unchecked, consumers will bear the brunt of such exploitation. The government must take decisive action against those responsible for artificial shortages and price manipulation. Measures such as stricter regulatory oversight, transparent supply chain monitoring and severe penalties for hoarding and market manipulation must be enforced to prevent such crises in the future. This sugar issue is really a reflection of the larger issue of cartelisation and the state’s failure to regulate industries that wield disproportionate power. Until the government confronts these interests head-on, this cycle of exploitation will persist.