SUGAR, a basic commodity essential to daily life, is on the brink of an unaffordable price surge.
Prices are expected to rise sharply in the coming weeks, possibly hitting Rs200 per kilogram, as the country faces a shortage of nearly 1 million tonnes.
Currently, retail prices hover between Rs165-170 per kg, up from Rs159 per kg in wholesale markets.
The sharp increase is raising alarm bells, particularly in Ramadan when demand for sugar traditionally peaks.
The sugar mafia has long used the same tactics to manipulate the market and increase their profits.
Their strategy is simple but effective: they claim there is excess supply to justify large-scale exports.
Once the sugar is exported, a shortage follows and domestic prices begin to rise uncontrollably.
This cycle has repeated itself time and again and it is deeply troubling that successive governments have failed to break it.
Time and again, they cave in to the sugar mafia’s pressure, ignoring the long-term impact on consumers and the economy.
While the government is taking credit for reducing inflation to historic lows, these figures will be hard to take seriously if the prices of basic commodities, like sugar, skyrocket in the coming weeks.
The government’s allocation of 100,000 tonnes of subsidized sugar for sale at Rs130 per kg during Ramazan may seem like a step in the right direction, but it is an insufficient measure.
According to some economists, this initiative would cover barely 10% of the demand, leaving the vast majority of families to cope with skyrocketing prices in open markets, where control is virtually non-existent.
It is incredibly disheartening that every time the sugar mafia creates this artificial shortage, they are allowed to get away with it, leaving ordinary people to suffer.
To prevent this predictable crisis from recurring, the government must act decisively.
Exports of sugar should only be allowed after a foolproof mechanism has been put in place to ensure there is sufficient supply to meet domestic demand.
Clear regulations, rigorous monitoring and a commitment to transparency should be introduced to prevent the sugar mafia from exploiting the system for profit at the expense of the public.
