July Sugar Exports Double Despite Local Price Hike

In an unexpected twist, sugar exports have surged by an impressive 100 percent in July, even as retail prices soar, as per data meticulously compiled by the Pakistan Bureau of Statistics.

While the citizens wrestle with the exorbitant prices of sweeteners within their homes, the month of July saw sugar exports climb to an impressive 5,542 tons— a staggering contrast to the complete absence of exports during the same period last year. Notably, the previous government acceded to sugar exports last year after persistent appeals from the Pakistan Sugar Mills Association, amidst the tumultuous economic downturn.

The aftermath of these elevated export figures has sparked intense deliberations, with many questioning the wisdom behind the government’s decision. Simultaneously, Pakistan also witnessed the import of 574 tons of sugar in July, showcasing a substantial increase of over 20 percent on a year-on-year basis.

Zooming out to the broader context of the ongoing fiscal year, FY23, the nation witnessed a significant surge in sugar exports. An impressive 215,752 tons of sugar were exported during the first five months alone. A pivotal turning point emerged in February 2023 when 42,434 tons of sugar were exported, marking the inception of this new trend.

The momentum continued to gather pace, reaching an astounding 129,746 tons in March. Export figures also remained robust in April, maintaining a notable tally of 40,716 tons. However, this trajectory witnessed a sharp deceleration, plunging to a mere 1,893 tons in May, and further plummeting to a staggering 963 tons in June. The volume of exports experienced a significant resurgence in July, culminating at 5,542 tons.

The repercussions of this extensive sugar export phenomenon have triggered a marked escalation in the average retail price of sugar, which has now surged to Rs. 160 per kg. Analysts predict this trend will persist in the months ahead, implying that consumers should brace themselves for more impending price hikes.