Minister vows strict sugar price control, rules out shortage

ISLAMABAD: Federal Minister for National Food Security Rana Tanveer Hussain on Monday dismissed concerns over a sugar shortage in Pakistan and rejected reports of soaring prices, despite retail rates touching Rs170 to Rs180 per kilogram in Islamabad’s open market.

In a televised address on state-run media, Hussain assured the public that the country has ample sugar stocks to meet domestic demand. He firmly rebutted claims that sugar is officially being sold at Rs180 per kilogram, attributing the price hike to profiteers and hoarders exploiting the market. “Under no circumstances will the retail price be allowed to exceed Rs164 per kilogram, while the ex-mill price is capped at Rs159 per kilogram,” Hussain said, adding that the federal government, in collaboration with provincial authorities, would take strict action against violators.

Hussain also noted that the Pakistan Sugar Mills Association has set up stalls at the tehsil level during Ramazan, selling sugar at Rs130 per kilogram. Additionally, Utility Stores are offering the commodity at Rs153 per kilogram. The minister criticized what he described as “baseless media campaigns” alleging a sugar crisis, arguing that such reports aim to spread panic and uncertainty. He further said the government is closely monitoring the sugar market to prevent artificial price hikes. Commenting on reports of sugar exports contributing to domestic shortages, Hussain dismissed them as “completely disconnected from reality.”

“Last year, Pakistan’s total sugar production was 7.6 million tons, while domestic consumption was around 6.3 million tons,” he said. “The surplus stock of 1.5 million tons allowed for exports after local demand was fulfilled, with about 700,000 tons shipped.” He further said that this year our production is near 6 million tons, while last year carryover 0.5 million tons make it total 6.5 million tons.

Notably, last week, in response to rising sugar prices, Prime Minister Shahbaz Sharif formed a 10-member committee headed by Deputy Prime Minister Ishaq Dar to engage with the Pakistan Sugar Mills Association and negotiate price reductions. Following discussions, Dar announced that the retail price of sugar would be capped at Rs164 per kilogram, with the ex-mill price set below Rs159. Chairing a high-level meeting, he warned that sales above the prevailing market rates of Rs178 to Rs180 per kilogram would not be tolerated.

According to the latest data from the Pakistan Bureau of Statistics (PBS), sugar prices, which had been on the rise for 16 consecutive weeks, fell by 0.87 per cent to an average national price of Rs170.40 per kilogram for the week ending March 20. In late November 2024, the average price was Rs131.85 per kilogram.

As per PBS data, Pakistan exported 757,597 metric tons of sugar worth $407 million during the first seven months of the current fiscal year, including 124,793 tons valued at $64.34 million in January alone.