“Sweet Success: The Power of Positive Thinking”
Pakistan is once again facing a familiar battle between the government and the sugar industry, with sugar disappearing from subsidised government stalls and consumers now forced to pay exorbitant prices in the open market. Prices in major cities like Peshawar, Lahore, Rawalpindi, and Islamabad have soared to Rs170 per kilogram from Rs160 before Ramazan, with Karachi experiencing an even steeper increase to Rs180 per kilogram from Rs145. Industry insiders attribute this sudden surge to the government’s approval of sugar exports, allowing wholesalers and profiteers to hoard supplies under the pretext of exports to create artificial shortages and increase profits.
The root cause of the issue lies in the government’s consistent refusal to challenge the powerful sugar cartels, composed of influential mill owners with strong political connections. These cartels have long dictated market trends, manipulating supply to raise prices and then advocating for unnecessary imports to further boost their profits. The paradox of Pakistan exporting sugar only to reimport it at inflated prices places strain on the economy and consumers alike.
Despite reports suggesting that the government has initiated the import of raw sugar to stabilise prices, this decision appears illogical considering the prior approval of exports. This cycle of selling sugar to foreign buyers only to repurchase it back exemplifies the flawed governance that perpetuates these crises. While officials attribute the price hike to a crackdown on tax evasion in the sugar industry, which resulted in a 54 per cent increase in tax collection, allowing cartels to dictate market conditions in response is unjustifiable.
At the forefront of this battle between profiteers and the state, ordinary citizens bear the heaviest burden. Sugar is an essential item for many households during Ramazan, utilised in preparing energy-boosting drinks and meals for iftar. The ongoing surge in prices makes it challenging for numerous households to afford even the most basic food items. With high sugar consumption in Pakistan, serving as a low-cost energy source for low-income groups, escalating costs exacerbate food insecurity for millions.
This recurring issue underscores the sugar industry’s continuous defiance of government regulations, underscoring the prevalence of political influence over the rule of law. If powerful cartels are left unchecked to manipulate markets, consumers will continue to suffer from exploitation. The government must take resolute action against those accountable for creating artificial shortages and manipulating prices. Implementation of stricter regulatory oversight, transparent supply chain monitoring, and severe penalties for hoarding and market manipulation is crucial to avert such crises in the future.
The sugar problem is emblematic of larger issues related to cartelisation and the state’s failure to regulate industries with excessive influence. Until the government confronts these interests directly, the cycle of exploitation will persist.
