Pakistan Seeks 100,000 Tons of Sugar Imports to Curb Soaring Prices
Islamabad 25 July: Trading Corporation of Pakistan (TCP) has launched an international tender to import 100,000 metric tons of white refined sugar, with a deadline for price offers set for July 31.
This move is part of a broader government plan approved on July 8 to import 500,000 tons of sugar to stabilize domestic prices, which have surged by from PKR 170 per kilogram in January, to PKR 200 per kilogram in July 2025 in local markets.
According to news reports, the tender follows a failed attempt on July 22 to procure 50,000 tons, which received no bids due to the tight shipment window of August 1-15, deemed unfeasible by traders. The new tender outlines shipments of 50,000 tons between August 21 and September 5, and another 50,000 tons between September 1-15, with containerized shipments due between August 21 and September 10.
All sugar must arrive in Pakistan by September 30, with a five-day extension for containers. The sugar can be sourced globally, excluding India and Israel.
Pakistan’s sugar industry faces significant challenges. Domestic production for the 2024-25 season is projected at 6.8 million tons, slightly up from 6.6 million tons in 2023-24, according to the USDA Foreign Agricultural Service.
However, annual consumption is estimated at 6.7 million tons, leaving a thin margin for supply stability. Exports of 765,734 tons from July 2024 to May 2025, earning PKR 114 billion, depleted stocks to 2.8 million tons, well below the 6.4 million tons consumed annually, per the Pakistan Sugar Mills Association (PSMA). This led to retail prices hitting a record PKR 190 per kilogram in June 2025, a 35.7% increase from PKR 140 in January.
The cost of importing 500,000 tons is substantial. Based on global market rates, with white refined sugar priced at approximately $540 per ton (as quoted in a 2021 tender), the total import cost could exceed $270 million. Pakistan’s trade deficit, already strained by $58 billion in imports for the fiscal year ending June 2025, and foreign exchange reserves dropping to $19.9 billion last week due to debt repayments, complicates financing these imports. The government has waived duties and taxes on sugar imports to ease consumer prices, but the International Monetary Fund, backing Pakistan’s $7 billion program, has expressed concerns over tax exemptions, according to posts on X.
READ MORE: Sugar Crisis in Pakistan
Industry issues include policy volatility and alleged cartel behavior. Critics, including PTI MNA Usama Mela, argue that exports benefiting select millers have triggered shortages, contradicting free-market agricultural policies. A 2020 investigation by then-Prime Minister Imran Khan revealed sugar mill owners profited over PKR 100 billion through subsidies and stock manipulation. Erratic monsoon rains and a 14% drop in sugarcane yields have further reduced production to 4.8-5.3 million tons for 2024-25, per AInvest, exacerbating shortages.
The TCP’s tender aims to address immediate supply needs, but logistical hurdles, such as short shipment windows, and global supply risks, including potential shortages in major producers like Brazil, could hinder success. Pakistan’s sugar crisis highlights the need for stable production and market-driven policies to balance consumer affordability and industry interests.
