ISLAMABAD: The federal government has officially set the ex-mill price of sugar at Rs165 per kilogram, following a consensus with the sugar industry, even as retail sugar prices continue to soar nationwide, reaching Rs200 per kilogram in key urban centres like Karachi and Peshawar.
Despite the newly agreed ex-mill sugar price of Rs165/kg, consumers are facing sharp increases in retail sugar prices, which remain well above the official benchmark. According to the Ministry of National Food Security, provincial authorities have been instructed to enforce the sugar price and ensure the commodity is made available to the public at the fixed rate.
“Provinces must ensure consumers have access to sugar at the approved price of Rs165/kg,” the ministry reiterated in a recent directive. Yet, across most retail markets, sugar prices remain volatile, driven by supply chain inefficiencies and alleged hoarding.
Government Approves Sugar Import to Stabilize Market
In a bid to address the disparity between ex-mill sugar prices and actual retail sugar prices, the federal cabinet has approved the import of 500,000 tonnes of sugar through public channels. The Ministry of National Food Security confirmed the import plan is already in motion, calling it a “corrective and transparent market intervention.”
Officials explained that this step is aimed at stabilizing the sugar market and curbing speculative pricing, contrasting it with past policies that, according to the ministry, enabled artificial shortages for profit. “This is not a politically motivated decision — this is about protecting the public,” a ministry statement read.
Industry Pushback and Political Criticism
However, the move to import sugar has faced criticism from the Pakistan Sugar Mills Association (PSMA), which claims that local stockpiles are adequate to meet national demand until at least November. The association argues that imports could distort the market and hurt domestic producers, especially with a stable ex-mill sugar price already in place.
Political voices have also joined the chorus of scepticism. PML-N senior figure Fawad Hassan Fawad questioned the rationale and timing behind the import decision, hinting at possible vested interests and lack of policy clarity. “Who benefits from this sugar import?” he asked, taking a veiled swipe at the government’s economic managers.
As the debate rages, the public continues to bear the brunt of retail sugar prices that exceed both the official ex-mill sugar price and the affordability threshold for many households. The effectiveness of enforcement efforts, combined with timely imports, will now be critical in determining whether the government can rein in prices ahead of the upcoming sugarcane crushing season.
