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Express Tribune
03-08-2025
- Business
- Express Tribune
Sugar import plan raises many eyebrows
Listen to article Last year, sugar mills had submitted sugar stock figures to the federal government and Prime Minister Shehbaz Sharif had been very happy with these stock figures. Based on the stock figures, the government had allowed the export of sugar which was linked with Rs2 per kg increase in retail price. It was agreed that sugar export would be halted if the retail prices went up from the benchmark price. But that price increased from the ex-mill price of Rs141 per kg to Rs200 per kg. Now, a game of imports has started with the Ministry of National Food Security and Research announcing on Saturday that the government is going to import 0.2 million tons of sugar to intervene to overcome sugar prices hike. The traders and sugar mill owners are both beneficiaries in the dirty game of price hike. First, the government allowed the sugar mills to pocket millions of dollars by exporting sugar and even raised prices in the domestic market. Now, the government is betting on the sugar import rather than taking strict action against the mills which had given an understanding that they would not increase the prices of the sweetener. The Ministry of National Food Security and Research in a statement announced the government's decision to import 200,000 tons of sugar. A spokesperson said the final order for sugar import has been placed and the import of sugar has entered the final stage after the opening of the tender. He said sugar is being imported from China. "The first shipment of imported sugar will reach Pakistan in early September 2025," the spokesperson said, adding that the aim of the import is to ensure the availability of sugar in the market and maintain price balance. He added that the relevant committee formed by the government also successfully obtained a discount at the time of purchase in the international market. The arrival of imported sugar, he said, will maintain price balance in the local market and directly benefit consumers. Federal Minister for Food Security Rana Tanveer Hussain recently claimed during a press conference that sugar is available in abundant quantities and its price is within the reach of the common man. He ruled out the claims that sugar was first exported and is now being imported to allow a mafia to mint money. "Except for one or two years, sugar has historically been exported in large quantities and then imported to meet demands. The sugar issue emerges seasonally like monsoon frogs," he remarked. He said the Sugar Advisory Board includes federal ministers, representatives from all four provinces, and relevant stakeholders. The government allowed sugar export in a phased manner. At the time when the export request was made, the global market price of sugar was $750 per ton. Hussain also claimed that there is a difference of Rs8 to Rs10 per kg between ex-mill and retail prices. After the export, he said, the local price of sugar dropped to Rs119 per kg. He said the government has maintained a buffer stock of 500,000 tons. Despite an increase in the cultivated area, sugar production fell. "As soon as we learned about the shortfall, the prime minister halted the remaining sugar export and 40,000 tons of sugar was not exported," he added.
Business Recorder
01-08-2025
- Business
- Business Recorder
Govt decides to deregulate sugar sector: minister
ISLAMABAD: Federal Minister for National Food Security and Research Rana Tanveer Hussain on Thursday said the government has decided to deregulate the sugar sector in a move aimed at stabilising the market. Addressing a press conference, he said that deregulation of the sugar sector includes prices, export and import. Under the deregulation, the government will not intervene in pricing, procurement, or supply mechanisms, allowing the private sector to operate freely. Dispelling rumours of sugar shortage and inflated prices, Hussain assured that sufficient sugar stock is available across the country. PSMA urges Pakistan govt to deregulate sugar industry He said that following reports of rising market prices, the government signed an agreement with sugar mills on July 14, fixing the ex-mill price at Rs165 per kg, with the retail price currently averaging Rs173 per kg. He emphasised that strict action is being taken against hoarders and profiteers attempting to create artificial shortages. 'The system is in place, and implementation is underway,' he said, adding the government has the name of some sugar mills owners on the exit control list (ECL). The minister said the country's sugarcane output for 2024–25 was initially projected at seven million metric tons, but climate-related disruptions caused a decline to 5.8 million metric tons. In response, Prime Minister Shehbaz Sharif ordered an immediate halt to sugar exports in January 2025 to safeguard domestic supply, he said. He said that by the end of the crushing season on April 30, the total available stock, including a buffer stock of 0.5 million metric tons, stood at 6.3 million metric tons—just enough to meet annual national consumption needs. Currently, the country holds about two million metric tons of sugar, sufficient to meet demand for the next three months, the minister said. Defending the government's earlier decision to allow sugar exports, Hussain said that such trade has been routine over the past decade, both in exporting surplus and importing when needed. He noted that the Sugar Advisory Board (SAB)—comprising federal ministers, secretaries, provincial representatives, and industry stakeholders—had approved exports last year based on available data. At the beginning of the previous sugar season, the country had an opening stock of 800,000 metric tons, with production reaching 6.8 million metric tons against domestic consumption of 6.3 million metric tons, creating a surplus of 1.3 million metric tons. 'Exports were allowed to protect farmers and millers,' he said, adding the market witnessed a price drop from Rs138/kg to Rs119/kg following the export decision in October 2024. He said the government has launched a crackdown against violators across the supply chain. Implementation will take some time, but the system is in place and action is underway, he said. According to Hussain, Pakistan earned $402 million by exporting 750,000 metric tons of sugar last year. To ensure domestic availability, the government also approved imports of up to 500,000 metric tons, although only 300,000 tons are expected to be brought in at an estimated cost of $150 million. 'The government remains committed to ensuring stability in the sugar sector while protecting the interests of both consumers and producers,' the minister said. Copyright Business Recorder, 2025
Business Recorder
29-07-2025
- Business
- Business Recorder
Sugar price in capital soars to Rs210 per kg
ISLAMABAD: Sugar price in federal capital has reached Rs210 per kg level against government fixed price of Rs170, Business Recorder noted. According to retailers the distributors have stopped supplying sugar to the shopkeepers even at Rs9,000 per bag of 50kg which prior to government permission to the sugar millers was selling at Rs6,000 a year ago, but after attaining export permission and successfully exporting the allowed quantity, the millers gradually started escalating sugar prices and recently in wholesale market it touched Rs9,400 mark. The retail sugar prices after Ramadan 2025 have witnessed a sharp increase and reached from Rs135 per kg to Rs210 per kg mark an increase Rs75 per kg or 55 percent. Shopkeepers said that for a few days, the commodity price after government action came down but consequently owing to supply shortage by the sugar millers, the stockists/distributors also stopped supply of the commodity to the retailers, as a result now prices have touched all time high even on superstores. Business Recorder in April 2024 had mentioned the plan of the sugar industry of taking the ex-mill sugar price to Rs170 per 50 kg bag, saying that sugarcane prices have gone up from Rs350 per 40kg to Rs450. In a meeting of Sugar Advisory Board held on April 2024 'the millers argued that in 2023 sugarcane price was Rs350 per 40kg which now has reached to Rs450 per 40kg and production cost of sugar at present stands at Rs170 per kg while in retail market refined sugar was available in the range of Rs145-150 per kg which is lowest price in the world'. The Pakistan Sugar Mills Association (PSMA) prior to attaining sugar export permission had ensured the government of devising a mechanism where by price stability of sugar will be ensured before exporting surplus stock produced in the country. As per April 2024 SAB's meeting, the provinces and PSMA would ensure smooth supply of commodity in the domestic market and the price stability till start of next crushing season. It was agreed to seek authenticated data on available sugar stocks, including expected sugar production from beet, and recommendations regarding export from provinces before taking any final decision on the export of sugar. The representatives of PSMA informed the government officials that Pakistan at present has around 1.6 million tons of additional sugar which should be exported. The PSMA has asked the government to allow export of one million tons of refined sugar in first phase which will bring around $650-700 million foreign exchange for the country and rest of the 0.6 million tons sugar be exported in two phases in May and June 2024. The PSMA in 2024 also informed the government that if the government did not allow sugar export it will result in the smuggling of the commodity to Iran, Afghanistan and other countries as a result the country will be deprive of the precious foreign exchange while smugglers will take advantage of the situation. According to the officials, locally industrial sector was consuming 85 percent of the sugar while the rest 15 percent was of domestic use. Copyright Business Recorder, 2025
Business Recorder
29-07-2025
- Business
- Business Recorder
Dar not a member of Sugar Advisory Board: Tarar
ISLAMABAD: Federal Information Minister Attaullah Tarar has strongly dismissed recent media reports claiming that Deputy Prime Minister and Foreign Minister Ishaq Dar is a member of the Sugar Advisory Board, terming the news misleading and taken out of context. Speaking to the media, Tarar clarified that a written response was submitted by the relevant department in the Senate in reply to a formal question, and all such records are available on the floor of the House. 'Before making such claims, the actual formation and composition of the Sugar Advisory Board should have been checked,' he said. Addressing other matters, the minister also defended Ishaq Dar over remarks related to Dr Aafia Siddiqui, stating that his statement had been deliberately misinterpreted. He noted that the Pakistani government is actively pursuing diplomatic and legal efforts for Dr Siddiqui's release, and Prime Minister Shehbaz Sharif has already met with Dr Fauzia Siddiqui. A legal committee, headed by the Law Minister, has also been formed to handle the case. Tarar added that unprecedented efforts are being made under the current administration for DrAafia Siddiqui's release, and political opponents are attempting to create controversy by misrepresenting facts. The minister also spoke about Pakistan's progress in regulating crypto currency, stating that it is the only country in the region to have established a proper regulatory framework. He criticised former finance minister Miftah Ismail's views on crypto, comparing them to India's stance. 'Crypto is a growing and regulated industry in Pakistan. Making uninformed statements or spreading baseless allegations only serves enemy agendas, not Pakistan's,' he said. Copyright Business Recorder, 2025
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
