Govt's sugar export policy backfires
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The flaws in the sugar export policy have been exposed, leading to a rise in sugar prices. The government is now planning to import sugar to float in the market and stabilise prices.
Sugar prices in the market have surged from Rs159 per kg to Rs170 per kg, with experts warning that prices could reach Rs200 per kg.
Earlier, the government allowed the export of sugar, a decision that sparked criticism. Even the Chairman of the Sugar Export Monitoring Committee, Musadik Malik, was removed from the committee due to pressure from sugar millers.
The government had linked sugar exports to price stabilisation in the local market. However, as prices began rising following the export of sugar, the committee chairman urged the prime minister to revoke the sugar export quota.
Now, the government is feeling the heat of the sugar export decision as prices in the local market continue to climb. In response, the prime minister has directed the import of raw sugar to stabilise the market, further highlighting the flaws in the export policy.
A high-level committee formed by Prime Minister Shehbaz Sharif has been tasked with conducting a detailed study on the effects and procedures of raw sugar imports, ensuring that any decision aligns with public interest and economic feasibility.
The committee convened on Wednesday in Islamabad to discuss the potential import of raw sugar as part of efforts to stabilise domestic white sugar prices.
The meeting, chaired by Federal Minister for National Food Security Rana Tanveer Hussain, was attended by Petroleum Minister Ali Parvez Malik, Minister for Industries Haroon Akhtar, and other senior officials.
During the meeting, participants analysed the implications of importing raw sugar, weighing its potential benefits and challenges. Hussain emphasised that regulated imports could help control market volatility and ensure price stability for consumers.
"The import of raw sugar could prove beneficial in stabilising the price of refined sugar in the country," Hussain stated.
The committee also examined models used by other countries for sugar market regulation and discussed mechanisms to balance import strategies with domestic production.
Hussain directed officials to conduct a comprehensive study on the impact and procedures of raw sugar imports, ensuring that any decision prioritises public interest and economic feasibility.
Prime Minister Shehbaz Sharif and the food security minister reaffirmed their commitment to providing maximum relief to consumers, stressing that all policy measures would be taken with their welfare in mind.
The government continues to explore strategies to mitigate inflationary pressures on essential commodities, with sugar prices being a key area of focus amid ongoing economic challenges.
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