Floods May Hit Sugar Supply as Prices Already Higher Than Global Rates

Sugar prices in Pakistan are already Rs30 per kilogram higher than international levels, and production risks may worsen the situation, lawmakers were cautioned on Tuesday.

During a session of the National Assembly’s subcommittee on commerce, officials of the Federal Board of Revenue (FBR) revealed that imported sugar costs Rs197.50 per kilogram with General Sales Tax (GST). The price without GST is Rs167.50, still well above global rates.

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The FBR attributed the difference mainly to freight charges. It further noted that tax exemptions on sugar imports were limited to government purchases, approved under IMF conditions, while private importers did not receive such concessions. So far, 220,000 metric tonnes of sugar have been imported.

The committee also heard warnings that ongoing rains and flooding could harm sugarcane yields, threatening future supplies.