Islamabad: In an effort to prevent manipulation of domestic prices, the cabinet has placed a price cap on sugar to regulate its export, reported The Express Tribune.
According to media report, the cabinet, led by Prime Minister Shehbaz Sharif, decided that if the retail price of sugar surpasses the benchmark ex-mill price or the retail price plus Rs 2, further exports will be halted immediately.
This decision has come in the backdrop of the sugar export scams in the past, where domestic prices skyrocketed immediately after the government allowed exports; at times, exports never took place but sugar millers benefited at the expense of consumers. The present government has permitted sugar exports but not without stringent domestic price controls.
The cabinet meeting has reiterated that both the ex-mill rate and the retail price of sugar must remain within the specified limits by ECC. The prime minister, Sharif, was very categorical in conveying that no rise in the sugar price would be allowed at the cost of consumers.
The Ministry of Industries briefed the cabinet that all these apprehensions were taken cognizance of during different meetings, including the ECC meeting on June 13, 2024. The cabinet allowed sugar exports against the estimates regarding consumption patterns and surplus stocks of the Sugar Advisory Board and relevant bodies.
It was assured to the cabinet that sufficient stock would be left with sugar mills at the commencement of the crushing season, even after allowing the export of 150,000 metric tons of sugar. It has been noted that the proposed exports will not affect ex-mill sugar prices.
To ensure appropriate monitoring of the decision-making on the export of sugar, a committee consisting of the federal minister for petroleum and water resources as chairman was set up by the cabinet. The committee would monitor the local price trends of sugar given the export decision and keep the prime minister and the cabinet informed about any manipulations in the respective markets at regular intervals.
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