ISLAMABAD: The sugar crisis in Pakistan has intensified after wholesale markets in major cities were forced to shut down, with traders warning of indefinite closures due to supply shortages and unsustainable pricing mechanisms.
President of the All-Pakistan Traders Association (APTA), Ajmal Baloch, criticised the government’s handling of the situation, saying traders are being compelled to sell sugar at a loss. “The pricing model is illogical and unsustainable,” he remarked, adding that the government must immediately release sugar stocks to retail and wholesale markets.
Ajmal Baloch further cautioned that if the situation persists, grocery stores and wholesale hubs nationwide will also face closure. He revealed that most sugar mills in Central Punjab have exhausted their stock, while mills in South Punjab suspended supply for four consecutive days — triggering the ongoing crisis. Nearly 70% of mills in Central Punjab are currently non-operational due to depleted reserves.
The APTA president also condemned the government’s crackdown on retailers, calling it unjustified. “Closing down shops and arresting grocery store owners won’t solve the problem,” he said. “The solution lies in engaging with stakeholders and addressing the root cause.”
Experts attribute the shortage to weak regulations and the political clout of sugar mill owners. In addition, climate-related challenges have reduced projected sugar output this year from 7 million metric tons to 5.8 million metric tons.
Meanwhile, inflationary pressures are mounting. According to the Pakistan Bureau of Statistics (PBS), the Sensitive Price Index (SPI) surged by 2.3% year-on-year during the week ending August 21 — the fifth consecutive weekly rise — driven mainly by rising sugar and gas prices.
