1.9m tonnes of sugar seized, names of 18 mill owners put on ECL

ISLAMABAD: In an extraordinary move to rein in soaring sugar prices and curb hoarding, Pakistan on Thursday took control of 1.9 million tonnes of sugar from private mills and placed 18 sugar barons on the Exit Control List (ECL), officials said, without disclosing their names.

Federal agents from the Federal Board of Revenue (FBR) have been deployed to sugar mills nationwide, backed by a digital track-and-trace system to monitor stocks, the Ministry of National Food Security said.

Officials said the names of mill owners barred from travel will be made public in the coming days. Asked for the names, an official said the interior ministry has the complete list and will release it soon.

However, when The News contacted the Punjab and Khyber Pakhtunkhwa chapters of the Pakistan Sugar Mills Association, they denied that any stock had been seized by the government.

Earlier, in a press conference, while turning up heat on hoarders, Food Security Minister Rana Tanveer Hussian accused stockists and hoarders of manipulating prices and vowed swift action, adding that names of those involved have been placed on the Exit Control List (ECL).

“People will see the heat very soon,” he said, dismissing reports of a crisis as “seasonal frogs that appear only during the rain.” He claimed sugar prices were stable at Rs172–173 a kilogram, with mills selling at Rs165 ex-mill.

Despite his assurances, many retail markets in Lahore, Islamabad, Karachi, Peshawar and Quetta reported shortages and prices of up to Rs190/kg.

Pakistan had allowed sugar exports in June 2024, with shipments beginning in August: 46,990 metric tons, September: 51,452 tons, October: 49,643 tons, November: 166,283 tons, December: 279,273 tons, and January 2025: 124,793 tons. In total, 757,597 metric tons worth about $406.91 million were exported during the period, according to official data.

The country began the crushing season with 800,000 metric tons in stock and produced 6.8 million tons, while the annual domestic demand was 6.3 million tons, leaving 1.3 million tons of surplus. “To prevent a supply glut that could harm both farmers and millers, the government had allowed gradual sugar exports,” he said.

Initial forecasts pegged 2024–25 sugar production at 7 million metric tons, but climate change-driven crop losses cut output to 5.8 million tons. In response, the prime minister halted exports in January. By April 30, total stocks, including a 500,000-ton buffer, reached 6.3 million tons—enough to meet annual demand. Currently, the country holds around 2 million tonnes of sugar, and 50,000 tons buffer stock enough to meet consumption needs for the next three months.

Minister also defended the government’s decision to import 300,000 metric tons of sugar, saying $150 million purchase is meant to stabilise the market amid supply pressures and hoarding. The minister said the next crushing season starts Nov. 15, which should further stabilise the market.

Meanwhile, the Pakistan Sugar Mills Association (PSMA) denied profiteering or engineered shortages, blaming “divergent administrative measures” for supply glitches. Mills, it said, sell at the official Rs165/kg price, while retail spikes are driven by dealers diverting stock to industrial buyers. The association warned that 12 mills have already shut down due to losses and urged deregulation of the sugar sector, similar to rice and maize.

Notably, hours after the minister’s presser, millers in Sindh and Punjab decided to withdraw from their price agreement with the federal government and suspended sales to corporate buyers and retailers, industry sources told The News.

Together, these two provinces produce most of Pakistan’s sugar. The move signals a brewing standoff that analysts warn could tighten availability and push retail prices even higher. This correspondent sought comment from the Pakistan Sugar Mills Association on the meeting but did not receive a response.

The move follows earlier resistance from Khyber Pakhtunkhwa (KP) millers, who have informed Prime Minister Shehbaz Sharif that they were not party to the price pact, citing an “illegitimate” sugar association leadership currently under court scrutiny.

Earlier, deputy prime minister/foreign minister, Senator Ishaq Dar also chaired a committee meeting to review the sugar availability situation in the country. It was attended by the food minister, SAPM Tariq Bajwa, secretaries of key ministries, and provincial officials.

The committee assessed sugar imports and market prices against provincially agreed notified rates, noting a downward trend but prices still slightly above official levels. It was informed that imported sugar would start arriving in Karachi by the end of September. Dar reaffirmed the government’s resolve to ensure price stability, maintain adequate supply of essentials, and protect consumer interests.