Abstract:
Purpose- Major aim of this study was to evaluate the impact of price hike and purchasing power on
sugar consumption pattern of individuals in Pakistan. The constant rising prices of food commodities
including sugar, and the sugar crises the country mostly is seen caught into prompted researcher to
conduct this study.
Methodology/sample- The study involved use of questionnaires filled by 240 respondents and
financial data of three sugar mills for the period of 2010-11 for financial analysis. The respondent
individuals belonged to different age groups, social classes and areas of residence. To analyze the
data, Regression, ANOVA and Correlation tests were applied. Data from three different sugar mills
from three different provinces of Pakistan was also collected and financial analysis of their annual
reports was conducted to determine their growing profits.
Findings- The analysis and comparative results clearly suggested that individuals in Pakistan have
decreased their sugar consumption due to increasing prices, while sugar mills are earning huge profits.
It was also concluded that higher profits earned by the sugar mills was due to artificial shortage
created by cartel making by the sugar mill owners in Pakistan.
