News Analysis: Punjab struggles with fixing of sugar price

LAHORE: The Punjab government’s month-long efforts to fix sugar prices have yet to deliver in a meaningful way, as the reality on the ground reveals a stark contrast.

According to official data, the notified rates are being followed in only a couple of district wholesale markets. These exceptions, out of 12 major markets, include Sargodha and Rahim Yar Khan. In the remaining districts, sugar is being sold at prices that deviate significantly from the official rate of Rs 165/kg.

In Sialkot, the wholesale market price stands at Rs184/kg, a whopping Rs19/kg above the official rate. Gujranwala, Faisalabad and Sahiwal are not far behind, with prices of Rs178/kg, Rs177/kg, and Rs172 respectively.

The stubbornly high deviation from the official price in several major markets has been a clear violation of the agreement between the federal government and Pakistan Sugar Mills Association (PSMA).

The government’s inability to enforce the fixed prices has left consumers feeling duped. The sugar mills seem to be taking advantage of the situation, prioritizing profits over compliance with the agreement.

As the government struggles to regulate the sugar market, consumers are left to bear the brunt of the price hike. The question remains: will the government take action to ensure compliance, or will the sugar mills continue to dictate prices?

Meanwhile, the Punjab government has formed a sugar coordination body to stabilize supply and prices. As per the notification, the provincial government established a Sugar Sector Coordination Committee to address supply and market issues. This move follows recent directives to enforce a fixed ex-mill price of Rs165 per kg and enhance stock monitoring.

The committee, formed with coordination of Pakistan Sugar Mills Association, will be led by DG (Food)/Cane Commissioner, with PSMA North Zone Secretary General as secretary. Members include representatives from major sugar mills, such as Almoiz Industries Ltd and JDW Sugar Mills.

The committee’s primary objective is to stabilize the sugar market and ensure compliance with notified prices. With the first meeting set for today, the Punjab government aims to resolve market issues and maintain a steady sugar supply.

The decision to form a high-powered committee came on the heels of the first month’s conclusion of a landmark agreement between the federal government and the sugar industry, inked behind closed doors on July 14, 2025.

Being party to the agreement, both the Ministry of National Food Security and the Pakistan Sugar Mills Association (PSMA) have decided to fix cascade rate for domestic consumers.

The clause 2a of the agreement reads: The maximum ex-mill price of sugar will be fixed at Rs165/kg on 15th July 2025 and will only be increased by Rs2/kg each month, until 15th October 2025.

Meanwhile, Secretary Price Control and Commodities Management Department Punjab Dr. Ehsan Bhatta has reiterated the Punjab government’s commitment to ensure continuous supply of sugar at controlled prices across the province. During a review meeting, Dr. Ehsan Bhatta said a total of 350,333 metric tons of sugar have been lifted from sugar mills so far at a price of Rs165 per kg, out of which 6,405 metric tons have been allocated to Lahore.

Notably, he added, a significant portion of this quantity has been released in the market at the retail price of Rs173 per kg, effectively ensuring adequate supply and price stability. To keep a close eye on the market, the department is holding daily Zoom meetings with deputy commissioners and District Food Controllers to monitor demand, supply and market trends.

Moreover, strict action has been taken against violators of price control regulations, with fines of Rs28.9 million imposed, 389 FIRs registered and 2,444 people arrested across Punjab. These measures demonstrate the government’s unwavering commitment to regulate the sugar market and protect the interests of consumers, ensuring that essential commodities remain available and affordable for the people of the province.