lack of effective oversight by the government has once again resulted in a shortage of sugar in the country.

Sugar production during the 2024-25 season has shown a consistent decline on a monthly basis as compared to the last year’s figures and the current season’s projections. Meanwhile, the export of sugar has continued without interruption. This situation has been blamed on undue influence of sugar mill owners over government officials in charge of regulating the sugar trade.

The Sugar Advisory Board failed to recognise the significant drop in sugar production and allowed the export of the sweetener, thereby exacerbating the shortage of sugar in the country.

Under the leadership of Rana Tanveer Hussain, the federal minister, the SAB held regular meetings every two weeks but overlooked the ongoing and evident decline in sugar production. The board did not halt the export of sugar. Had the board acted promptly and imposed a ban on sugar export, the severe shortage could have been averted.

Sugar industry data for the 2024-25 season reveals a decrease in domestic production, a trend starkly illustrated by successive sugar production statements. The 5,861,769 tonnes total output meant a 982,050 tonnes or 14 percent decrease from 6,843,819 tonnes in 2023-24. The monthly data too had indicated a steady decline in the sugar production.

This trend was evident from the beginning of the 2024 crushing season. Sugar manufacturing decreased by 29,173 tonnes in November and363,118 tonnes in Decemeber. In March, there was a staggering decline of 237,522 tonnes or 47 percent. Despite these figures, the export of sugar – predicated on a presumed surplus - continued unabated.

The production statistics reflected a struggling domestic supply, yet the export policy remained unchanged. The officials in charge were apparently more sympathetic to the industry than the domestic consumers. As a result, local need was ignored.

The decision to continue the export, despite a 14 percent overall drop in production, suggests effective lobbying by the sugar mills. Historical pattern, like the 2022 export boom with low reserves, is sye-opening. The export drives up the prices in the local market, hitting low-income families the hardest.

Transparency and data-driven thresholds are essential to check such failures.

Instead of effectively regulating sugar trade as per market reality, the Sugar Advisory Board apparently forgot its primary functions resulting in poor governance that cost the people dearly.

Surprisingly, the SAB shifted its focus from critically reviewing sugar production volumes in its proceedings during peak export fortnights. Instead, it announced measures for setting up special sugar stalls for providing the commodity at lower prices, in a move seen by market watchers as a ploy to obscure the early shortfall in the sugar production.

The Sugar Advisory Board apparently forgot its primary function, resulting in poor governance that cost the consumers dearly. 

Halting exports, the needed intervention by the Board, could have stabilised supply. The regulator should have ignored the pressure brought to bear by the manufacturers and realigned priorities with public welfare.

In this context, the composition of the Sugar Advisory Board warrants greater public attention. Several organisations have voiced concern about how farmers are represented on the Board. They argue that certain members, who are said to represent the interests of farmers, in fact nominated to the Board at the behest of the Pakistan Sugar Mills Association. Some of the former representatives from the growers’ organisations have claimed that they were removed from the SAB under the influence exerted by the sugar industry lobby.

The SAB has so far avoided scrutiny of its decision making and how it aligns with its mandate to protect the consumers’ interests while regulating sugar production and trade.

The lapse on the part of the SAB stems from structural issues and political influence.

It is an open secret that the sugar industry exercises disproportionate influence through politically powerful sugar mill owners, of whom many are parliamentarians or have close ties to those in power. This creates a conflict of interest as SAB advice and government policies often favour the mill owners at the expense of ordinary consumers.

The SAB, meant to regulate the industry impartially, has clearly been unable to do that. It has allowed the mill owners to manipulate the supply and price triggers for allowing exports and imports.

The PSMA has been flagged previously by the Competition Commission of Pakistan for cartel-like practices, such as hoarding and price manipulation. The SAB has failed to enforce strict measures against such practices, enabling the mills to export sugar to create shortages and then sell the remaining stocks at higher prices.

On several occasions during the past decade, the SAB approved sugar exports despite the likelihood of potential domestic shortages. For instance, in 2018 and 2019, the SAB permitted the export of 1.1 million tonnes of sugar despite concerns about low sugarcane production and water shortages. This led to a domestic supply gap, causing retail prices to surge from Rs 55.99 per kg in November 2018 to Rs 71.44 per kg by June 2019.

Between July 2024 and May 2025, Pakistan exported 765,734 tons of sugar. The export has been followed by a decision to import 750,000 tonnes, including raw sugar. The exports drove the domestic prices to a record Rs 200 per kg, significantly higher than the pre-export rate of Rs 140 per kg. The SAB’s failure to balance export quotas with domestic needs exacerbated the price volatility for the consumers.

Arbitrary policies of the government’s Sugar Advisory Board continue to favour the sugar industry.

The writer is a staff reporter at The News International.