Latest news with #Rs114
Express Tribune
10-07-2025
- Business
- Express Tribune
Kisan Ittehad blames smuggling for sugar price hike
Kisan Ittehad President Khalid Hussain Batth has alleged that speculative hoarding, large-scale smuggling, and institutional inaction are driving the recent surge in sugar prices. While addressing a press conference at the Karachi Press Club on Wednesday, Batth claimed that if the prime minister and the president intervened, the retail price of sugar could be brought down to Rs120 per kilogram within hours — without the need for duty- and tax-free imports. He asserted that sugar is currently being sold at around Rs200 per kilogram despite a production cost of no more than Rs120. "Sugar mills purchased sugarcane from farmers at rates ranging between Rs220 and Rs460 per maund. The price hike has no justification," he said. Batth demanded a transparent investigation into sugar mill owners to uncover who bought sugar, in what quantity, and at what price. He claimed that the current crisis has resulted in a financial scandal amounting to Rs114 billion, arising from speculation, smuggling, and now importation. In response to a question, Batth revealed that a court case related to sugar and wheat prices remains pending with no hearings held to date. He further alleged that political figures from major parties, including the PML-N, PPP, and PTI, own significant shares in sugar mills. He claimed that even the families of the prime minister and president are involved in the sugar industry. Batth accused the government of artificially inflating prices due to incompetence and warned that the planned import of 500,000 tons of duty-free sugar would result in substantial losses to the national exchequer. City traders oppose sugar import plan The Wholesale Grocers Association has vehemently opposed the government's decision to import 500,000 tons of sugar, calling instead for an immediate crackdown on hoarders and speculative sugar dealers who are driving up market prices artificially. Chairman of the association, Rauf Ibrahim, told The Express Tribune that dealers and the sugar speculation mafia currently hold stockpiles of approximately 2.6 million tons-enough to meet the country's needs for the next five months. "If swift action is taken against these dealers, wholesale sugar prices could drop to Rs150 per kilogram within just two days," Ibrahim claimed. In a related development, the Federal Board of Revenue (FBR) has issued two new SROs-No. 1216 and 1217-reducing sales tax on white crystal sugar imports from 18% to 0.25%. Additional relief includes exemption from Value Added Tax and a reduced withholding tax rate of 0.25%. According to FBR, the final deadline for importing sugar under these provisions is September 30, 2025.
Express Tribune
09-07-2025
- Business
- Express Tribune
Sugar prices and imports
Listen to article The past few weeks have seen sugar prices soar, reaching a staggering Rs200 per kilogram in Karachi and surpassing Rs185 in most major cities. Retail prices have surged by as much as 50% in some cases, despite overall inflation having come down significantly. Most experts note that the crisis stems not from genuine scarcity but from a toxic cocktail of export miscalculations, hoarding and regulatory failure. The government's decision to approve 500,000 metric tons of sugar imports — waiving 53% in duties — is at best a desperate corrective measure, and at worst, a direct cash handout to sugar barons. Keep in mind that the decision comes just a few weeks after Islamabad approved the export of 765,000 tons of sugar, earning Rs114 billion while triggering domestic shortages. The food minister may claim that low yields due to climate change, rather than exports, are to blame for the shortage, but this argument suggests the government lacks the foresight to prepare for a poor crop, despite several years of erratic weather patterns requiring any half-good policy planner to factor these in. In fact, the decision to import could violate our international commitments, as the finance ministry reportedly argued quite loudly that Pakistan is supposed to avoid agricultural imports as a measure to reduce the trade deficit. The government's counterargument that the shortage has created a food emergency is almost comical. It's because the government is itself responsible for the shortage, since the import authorisation is significantly less than the exports allowed, and even with the poor crop this year, blocking exports would have kept the net shortage at a negligible level. Given the wide-ranging political influence of sugar barons, it is unsurprising that the parliament has had little to say about the failure of the sugar export policy. But without proper market regulation and policymaking, sugar will remain a bitter symbol of economic injustice — a commodity where policy failures sweeten profits for a few and sour lives for millions.
Business Recorder
24-06-2025
- Business
- Business Recorder
SAB okays 0.5 MT import of sugar
ISLAMABAD: The Sugar Advisory Board (SAB) on Monday okayed the import of 0.5 million tons of sugar after the government exported the commodity in a large quantity in the current financial year, which led to a sharp increase in domestic sugar prices. The meeting of the SAB, which met with Federal Minister for National Food Security and Research Rana Tanveer Hussain, approved the import of 0.5 million of sugar to control rising prices and ensure a consistent supply of the commodity in the market. According to the Pakistan Bureau of Statistics (PBS), the country exported 765,734 metric tons of sugar between July and May this fiscal year, earning Rs114 billion. However, as expected following this export domestic sugar prices rose sharply and hit a record Rs190 per kg. Import of 250,000MT raw sugar: policy to be submitted to Cabinet During the meeting, the minister said that the decision to import sugar had become unavoidable due to a nationwide shortfall in supply and sharp price hikes. He attributed the recent surge in sugar prices largely to unjustified price increases by sugar mill owners. The minister emphasised that all formalities regarding the import will be completed within the next few days, and the imported sugar will be brought into the market at the earliest to provide relief to consumers. To tackle the crisis, the government has already initiated urgent measures and decided to implement strict monitoring of both sugar supply and pricing across the country. 'The situation demands immediate action. Stabilising sugar prices and ensuring its availability is the government's top priority,' said the minister. Copyright Business Recorder, 2025
Express Tribune
20-06-2025
- Business
- Express Tribune
The sugar swindle
Listen to article The sweetener has left sourness with the customers. The incongruous decision of the federal government to export sugar and then import it back is being pondered by the hapless nation with their jaws dropped. Either the authorities are too naïve to understand the mechanics of basic economics, or they are obsessed with vested interests. This is not the first time that a sugar scam is on the cards. Rather, it has become a modus operandi of successive governments to appease the sugar mafia — especially the mill owners and those who share the booty in the ruling clique — by playing with the support price of the sugarcane crop, then manipulating the raw and processed cost of sugar, and finally throwing it to the wolves at the altar of national interests. This time again, the government has decided to import 750,000 metric tonnes of sugar that it had itself sold in the international market under a mysterious calculus. The product was sold at a price tag of Rs114 billion, and no one is sure what amount of foreign exchange it will incur to bring it back home. Such lopsided decisions are a crime, per se, and must warrant retribution. Surprisingly, the swift manner in which the proposition and the entire decision-making process receive prompt passage from all stakeholders is enough to raise eyebrows, and warrants a national debate and inquiry. As far as the commoner is concerned, it leads to inflation, apart from torpedoing the domestic supply chain. This gimmick has led to a rise in sugar prices, and now the commodity is being sold at Rs190 per kilogram — a staggering Rs50 higher than the pre-export price. Yet the Ministry of National Food Security has the audacity to claim that there are sufficient stocks, and that imports were meant to lower prices! This annually enacted swindle, meant to hoodwink the nation, is a curse. While the country has a total annual consumption of 6.4 million tonnes, it must ensure that appropriate stocks are guaranteed before any ambitious decision to export is taken — with due public endorsement. A valve to involve the consumers is indispensable to put a stop to such scams happening right under the official eyes and ears.
Express Tribune
19-06-2025
- Business
- Express Tribune
Govt to import sugar after exports
Listen to article In a paradoxical move, the government on Thursday decided to import 750,000 metric tonnes of sugar after having already exported nearly the same quantity during the current fiscal year — a move that has driven domestic prices sharply higher, benefitting sugar millers. The move has raised questions over the rationale behind the government's earlier approval of sugar exports, which critics warned would hurt domestic supply and inflate prices. The new plan includes submitting a policy for the import of 250,000 metric tonnes of raw sugar to the cabinet for approval, while 500,000 metric tonnes of refined sugar have already received in-principle approval, Deputy Prime Minister Ishaq Dar announced via X (formerly Twitter) after chairing his second meeting on the issue in three days. According to the Pakistan Bureau of Statistics (PBS), the country exported 765,734 metric tonnes of sugar between July and May this fiscal year, earning Rs114 billion. This marks a 2,200% increase in sugar exports compared to the same period last year. Exporting first and then deciding to import has sparked concerns over the government's contradictory policies and the disadvantageous position imposed on consumers. After exports, domestic sugar prices hit a record Rs190 per kilogram — Rs50 higher than the pre-export price. A Ministry of National Food Security official claimed that there were sufficient stocks and imports are only being considered to lower prices. As of the latest PBS weekly bulletin, sugar was priced between Rs170 and Rs190 per kilogram across the country. In March, the government had fixed the retail price of sugar at Rs164 per kilogram — 13% higher than the cap set during the export approval period — allowing millers to enjoy windfall gains in both local and export markets. Dar's committee had negotiated the ex-factory and retail prices of sugar with the Pakistan Sugar Mills Association (PSMA), which has previously been accused of cartel-like behaviour by the nation's antitrust watchdog — the Competition Commission of Pakistan. Despite the agreed rates, the government failed to ensure stable retail prices. Dar added on Thursday that the Ministry of National Food Security has been instructed to seek the Economic Coordination Committee's (ECC) formal approval for the sugar imports. Currently, the deputy prime minister is making key economic decisions that are later presented to formal forums for ratification. On Wednesday, Dar also announced a downward revision of the proposed sales tax on solar panel imports — from 18% to 10% — for the upcoming fiscal year, diverging from the initial budgetary proposal. Finance Minister Muhammad Aurangzeb, meanwhile, is engaged in trade negotiations with the United States — normally the responsibility of the commerce ministry. The sugar import decision followed a high-level meeting attended by the Minister for National Food Security, Special Assistant to Prime Minister (SAPM) Tariq Bajwa, officials from the Federal Board of Revenue (FBR), the Federal Investigation Agency (FIA), Ministry of Industries and Production, PSMA, and provincial representatives. Dar reiterated the government's commitment to balancing the interests of both consumers and producers, stressing the importance of making essential commodities affordable and widely available. According to PSMA's presentation at the meeting, average monthly sugar consumption last year was 533,000 metric tonnes, with a total annual consumption of 6.4 million tonnes. In the first half of this fiscal year, monthly consumption showed a negligible increase of 0.003% to 535,016 metric tonnes, totalling 3.5 million tonnes so far. PSMA claims current sugar stocks stand at 2.8 million tonnes — enough to meet demand until November 21 even at the compressed consumption level of 535,000 metric tonnes per month. However, the government's decision to import 750,000 tonnes suggests that either the shortage is more acute than reported or consumption is higher than projected. Experts had earlier opposed the government's decision to export sugar, fearing that it would jeopardise supply and raise prices for the entire population to benefit a small group of industrialists. The government's control over sugar trade also contradicts its recently adopted free-market agricultural policies. "Export and import decisions should be left to farmers and market forces, not to selective millers with political influence," said Usama Mela, a Pakistan Tehreek-e-Insaf (PTI) MNA, during a National Assembly Standing Committee on Finance meeting this week. The PSMA, whose members are direct beneficiaries of the export, also recommended curbing sugar smuggling to neighbouring countries and proposed a tolling policy for importing raw sugar to manage stock shortages. PSMA also suggested starting the crushing season from November 1 — a proposal that is largely seen as symbolic and may be an attempt to deflect the criticism over the export of sugar. The PSMA stated in the meeting that without duties and taxes the cost of imported sugar was Rs153 per kilogram, which is still Rs37 per kilogram cheaper than the local price bonanza. The millers claimed that the country produced 5.9 million metric tonnes of sugar this year, which was 14% or nearly 1 million tonnes less than the previous crushing season.
