Latest news with #SugarExportMonitoringCommittee
Express Tribune
14-03-2025
- Business
- Express Tribune
Sweet profiteering
Listen to article The recent turmoil in the sugar market, characterised by soaring prices and a growing sense of discontent among consumers, has cast a stark light on the government's sugar export policy. A few months back, the government played up its decision to allow sugar exports as a means to stabilise the domestic market by increasing production and stimulating economic growth. However, subsequent domestic price increases and the need to import sugar to stabilise prices have exposed the shortsightedness of this approach. The export policy not only led to a depletion of local stocks but also ignited a price hike that has seen sugar prices surge from Rs159 per kg to Rs170, with experts cautioning that they could soon reach Rs200. This disruption has made life increasingly difficult for most consumers, who are already struggling to pay for other essential commodities as inflation — though much lower than in the last few years - continues to outpace income growth. The government's earlier justification for exporting sugar was price stabilisation — avoiding a large price dip that might discourage growers. However, the people pushing for exports were not growers, but millers, who are more concerned with increasing their profits rather than stablising domestic prices and supply. Unfortunately, Musadik Malik, one of the only prominent voices to oppose exports, was removed from the Sugar Export Monitoring Committee for his trouble. There is no excuse for letting supplies run so low that last-minute imports are necessitated. Commercial sugar has a very long shelf life and can easily be stocked well in advance to ensure price stability for domestic consumers while also leaving some stock available for export if international prices rise significantly. This, or any similar approach, would be in the best interests of all parties except profiteers. Unfortunately, agriculture policy has always been less about the people and more about the interests of large landholders and mill owners, many of whom double as parliamentarians and profiteers.
Express Tribune
12-03-2025
- Business
- Express Tribune
Govt's sugar export policy backfires
Listen to article 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.
