Govt tries sugar price cap again after March move flops

ISLAMABAD: The government is set to fix the retail price of sugar not more than Rs175 per kg following a recent deal with sugar mills under which the ex-mill sugar price was increased by Rs6 per kg to Rs165 per kg.

The Ministry of National Food Security and Research on Wednesday dismissed as misleading recent media reports suggesting that the latest talks between the government and the Pakistan Sugar Mills Association ended without results.

In a statement, the ministry clarified that a decisive agreement was reached during the meeting chaired by Federal Minister Rana Tanveer Hussain, fixing the ex-mill price of sugar at Rs165 per kilogram and capping the retail price between Rs173 and Rs175 per kilogram.

The price-fixing move follows failed attempts to stabilise the market, where sugar prices recently surged to nearly Rs200 per kg despite previous caps. A formal retail price notification is expected soon, pending cabinet approval. Provinces will be responsible for enforcement.

This marks Islamabad’s second intervention in less than four months. In March, Deputy Prime Minister Ishaq Dar set a Rs164 per kg retail ceiling, but it was widely ignored, and market prices never dipped below Rs180 per kg.