Already, price hikes have been observed in local markets following the supply constraints. Millers argue that the curbs are a deliberate trade policy shift aimed at facilitating sugar imports under relaxed tax or duty arrangements — potentially sidelining local production. The industry fears that continued restrictions could lead to a serious shortage, especially in rural and remote areas where supply chains are less resilient. While this situation is unfolding in Pakistan, global sugar markets are also under pressure. For instance, India’s reduced sugar output is tightening supply and lifting white sugar prices globally.
Conversely, in India, authorities recently lifted restrictions that previously capped sugar use for ethanol production, which boosted sugar stocks and alleviated some pressure. If curbs persist without corrective measures, options like increasing imports, tapping buffer stocks, or policy intervention may be needed to prevent severe shortages.
