The retail price of sugar in Peshawar has climbed to Rs178 per kg, while a 50-kg sack is now selling for Rs8,900, according to local sugar dealer Taimur Khan from Rampura Gate.

Speaking to TNN, Taimur said that the main reasons for the price hike include the end of the sugarcane crushing season, government taxes on online transactions, and the influence of market manipulators who exploit seasonal shortages.

“The crushing season ends by March. After that, prices start rising. Dealers are now relying solely on their current stock, as no one is willing to buy new supplies under these conditions,” he said.

He added that online payments are heavily taxed, and constant questioning from tax authorities has discouraged shopkeepers from restocking. “Payments are not just made to mill owners; brokers and others are also involved,” he noted.

Khurram Shehzad, another Peshawar-based sugar dealer, echoed similar concerns, citing rising fuel prices, FBR’s sales tax on mills, and increased mill operating costs as contributing factors.

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“This happens every year. As demand peaks during Ramadan, Muharram, and Eid, prices rise. We expect some relief once the new crushing season begins,” he said.

He disagreed with the notion that sugar hoarding mafias were responsible, arguing that stockpiling in the current climate leads to financial losses and even spoilage of sugar.

Khurram also pointed out that sugar trade decisions are largely driven by Lahore's central market, as Khyber Pakhtunkhwa now only has three to four operational mills, with many shut down over the years.

Meanwhile, frustrated residents such as Mohammad Suleman, Akhtar Ali, and Hakeemullah demanded government intervention.

“If sugar is Rs177 at one shop and Rs183 at another, why is there no price regulation? The government must act beyond just forming committees,” they said, calling for a fixed price of Rs150 per kg or less.

With no short-term relief in sight, both dealers and consumers are bracing for continued volatility until the new crushing season begins later this year.