The Sugar Cartel: An Ongoing Exploitation of Pakistani Consumers

 Greed has no boundaries, but the greed of individuals involved in Pakistan’s sugar industry—from makers to retailers—is genuinely unparalleled. The strong sugar cartel has historically manipulated the market, utilising political clout to gain concessions from all governments while maximising profits, regardless of whether there is a shortage or excess. Unfortunately, consumers face the brunt of this unrestrained profiteering, with little or no protection from government action.

Unchecked Power of the Sugar Cartel

Pakistan’s sugar business is well-known for its capacity to influence government policy. Evidence reveals that mill owners and dealers participate in a substantial grey market, committing major tax evasion and pricing manipulation. The cartel’s authority extends far beyond economic control, into the halls of power, making it practically hard to hold them responsible.

A good example of this was the unexpected sugar crisis during Imran Khan’s reign, which triggered an investigation by the Federal Investigation Agency (FIA). The inquiry uncovered widespread stockpiling, deceptive price increases, and tax cheating by significant business actors. It proposed many ways to control the sugar trade and avoid future crises. However, the proposals were never implemented.

The Recent Sugar Price Surge

Retail sugar prices have risen again, from Rs130 to Rs180 per kilogramme since January 2025. This price increase is particularly concerning because it occurs during the ongoing crushing season, when costs should ideally remain flat or fall. What makes this scenario even worse is that the government approved sugar exports last year on the condition that domestic retail prices do not surpass Rs140-145 per kilogramme.

Rather of ensuring responsibility and addressing the structural reasons that drive price increases, the government has chosen a short-term, unproductive solution: importing raw sugar. Furthermore, subsidising sugar at Ramadan bazaars is a short-term remedy that does not address the underlying reasons of price instability.

It’s time for structural reforms, not band-aid solutions.

To break the cycle of exploitation, the government must implement extensive policy reforms and create a transparent, regulated sugar market. Some required actions are:

1 , Deregulation of the Sugar Trade – The government should stop intervening directly in sugarcane and sugar price determination. Instead, market forces should be permitted to establish equitable pricing for both producers and consumers.

2, Improving Market Oversight – Authorities must crack down on stockpiling and tax cheating in the sugar industry. This necessitates rigorous oversight of mill owners, merchants, and retailers.

3 Ending Sugar Politics – Government policy should prioritise consumer rights over the entrenched interests of a small group of politically connected sugar barons.

4 Transparent Import and Export Policies – Rather than making ad hoc judgements on sugar imports and exports, Pakistan need a well-defined, transparent trade strategy to maintain market stability.

5 Digital Sugar Supply Chain Tracking – Implementing a digitised monitoring system will assist reduce black market activities and guarantee that sugar is delivered to customers at reasonable costs.

Conclusion

The sugar problem in Pakistan is the result of uncontrolled greed and market manipulation, not shortages. Until the government musters the political will to abolish the sugar cartel’s monopoly, consumers will continue to face frequent price increases. The loop of fictitious emergencies, emergency imports, and ineffective subsidies must stop. The only way ahead is to have a free and well-regulated sugar market. Will the government finally act, or will it continue to submit to the sugar barons? Only time will tell.