Govt orders sugar import to stabilise domestic prices

The federal government has ordered the import of 200,000 metric tonnes of sugar to stabilise domestic prices and ease consumer burden, the Ministry of National Food Security confirmed on Saturday.

According to the ministry's spokesperson, this step was taken to ensure the availability of sugar in the market and prevent artificial price hikes.

The spokesperson added that the sugar is being imported by the government, and the procurement process has entered its final phase following the opening of tenders.

The first shipment of imported sugar is expected to arrive in early September.

It added that the decision to import sugar was taken to ensure the availability of the stocks in markets and maintaining a balance in domestic pricing without burdening the national exchequer.

The spokesperson further stated that the decision to import sugar was made after securing a favourable discount in the international market, which would help maintain balance in domestic pricing without burdening the national exchequer.

The government hopes that the influx of imported sugar will support local market stability and curb inflationary trends affecting a key household commodity.

Pakistan’s sugar crisis has worsened as markets in Lahore and Islamabad reported severe shortages, while prices in Karachi, Peshawar and Quetta surged to as high as Rs190 per kilogramme, defying official price caps, The News reported.

Amid the escalating crisis, Federal Minister for National Food Security and Research Rana Tanveer Hussain earlier this week chaired a high-level meeting with the Pakistan Sugar Mills Association (PSMA) and provincial stakeholders, warning of “strict oversight” of mill stocks.

Citing the crisis, Prime Minister Shehbaz Sharif had also warned two days ago that anyone violating the agreed sugar prices would face strict action, stressing that no one would be allowed to exploit the public financially.

The prime minister issued strict directives for the enforcement of the agreement reached between the PSMA and the government.

According to the agreement, the ex-mill price of sugar is set at Rs165 per kilogramme, while the retail price must not exceed Rs173 per kilogramme.

The federal government reiterated its resolve to continue cracking down on hoarders and market manipulators.

In another extraordinary move to rein in soaring sugar prices and curb hoarding, the government had taken control of 1.9 million tonnes of sugar from private mills and placed 18 sugar barons on the Exit Control List (ECL), according to the publication.

However, the PSMA's Punjab and Khyber Pakhtunkhwa chapters denied any seizure of stocks by the government.