ISLAMABAD: The recent approval for exporting 150,000 tonnes of sugar has led to a noticeable surge in local sugar prices, with retail prices rising from Rs145.15 to Rs147.71 per kilogram, an increase of Rs2.56 per kg.
The Ministry of Industry and Production has swiftly responded to this price hike, seeking clarification from the Pakistan Sugar Mills Association (PSMA) about the sudden increase. In light of these rising costs, the ministry is considering suspending the export quota granted to sugar mills.
To address the escalating prices, a meeting has been scheduled for tomorrow with the committee responsible for monitoring sugar exports and the Sugar Advisory Board. The aim of the meeting is to evaluate the situation and develop a strategy to control the price increase.
The Pakistan Sugar Mills Association has also come under fire for failing to settle arrears owed to farmers. Compounding the issue, the association has requested permission to export an additional 8.5 million tonnes of sugar, further complicating the situation. Critics argue that the association’s focus on export profits is exacerbating local price volatility and negatively impacting farmers.
On July 20, the Utility Stores Corporation (USC) dismissed concerns about a potential sugar shortage in the country, attributing the temporary halt in sales to the recent imposition of an additional tax on sugar in the new budget. A USC spokesperson clarified that rumours of sugar unavailability or an impending crisis were unfounded, and assured that the corporation had an ample supply of sugar. The spokesperson explained that the suspension of sales was due to the excise duty increase of Rs15 per kilogramme introduced in the new budget.
This series of events highlights the complex dynamics between government regulations, industry practices, and market reactions. As stakeholders work to balance export opportunities with domestic price stability and supply concerns, the government’s actions in the coming days will be crucial in determining the future trajectory of sugar prices and availability in Pakistan. The outcome of the scheduled meeting could have significant implications for consumers, producers, and the overall economy.
I am an accomplished graduate of Strategic Studies, driven by a fervent dedication to comprehending global affairs and devising impactful strategies. Equipped with a comprehensive skill set encompassing research, critical thinking, and persuasive communication, I possess a distinctive viewpoint and an unwavering commitment to fostering inclusive decision-making processes. As a versatile individual, I excel in collaborating with diverse groups in various settings, leveraging my strong interpersonal abilities to adapt seamlessly to new environments and surmount any challenges that arise. With a passion for contributing to strategic initiatives, I am eager to leverage my expertise and drive to effect positive change within the field.
