Minister pledges strict sugar price checks, denies shortage

• Hoarders blamed for price surge to Rs180 per kg.
• PBS reports slight sugar price dip after long rise.
• Minister criticised reports alleging a sugar crisis.
  

ISLAMABAD: Federal Minister for National Food Security Rana Tanveer Hussain on Monday rejected concerns over a sugar shortage and denied reports of skyrocketing prices, even as retail rates in Islamabad’s open market reached Rs170 to Rs180 per kilogramme, The News reported.

In a televised address on state media, Hussain assured the public that sugar stocks were sufficient to meet national demand, blaming the price surge on profiteers and hoarders rather than any official pricing policy.

“Under no circumstances will the retail price be allowed to exceed Rs164 per kg, while the ex-mill price is capped at Rs159 per kg,” 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 Ramadan, selling sugar at Rs130 per kg. Additionally, Utility Stores are offering the commodity at Rs153 per kg. 

The minister criticised 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 kg, 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 kg 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% to an average national price of Rs170.40 per kg for the week ending March 20. In late November 2024, the average price was Rs131.85 per kg.

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.