Bulk exports push sugar prices up

Pakistan exported a significant quantity of sugar during the February-April period of this fiscal year which pushed up domestic retail prices of the sweetener. In comparison to the same period last year, where there were no foreign sales, the country successfully exported a substantial quantity of 212,896 tonnes of sugar in FY23, according to data compiled by the Pakistan Bureau of Statistics. Responding to the demands of coalition partners, particularly the Pakistan People’s Party (PPP), the government led by the PMLN decided to permit sugar exports in February. A total of 42,434 tonnes of sugar was exported alone in February, marking the beginning of this new export trend. The following month, the quantity of exported sugar saw a significant surge, tripling to 129,746 tonnes in March. The exports remained robust with a total of 40,716 tonnes in April. Due to the excessive export of sugar in significant quantities, the average retail price of sugar skyrocketed to Rs136 per kg in May, and there are expectations of further increases in the upcoming months.