Islamabad: Over the past three months, the price of refined sugar has increased by Rs1,100 per 50-kg bag, rising from Rs133 per kg in November to Rs155 per kg in retail markets. In response, the government has initiated measures to stabilise these prices, reported Business Recorder.
Federal Minister for Industries and Production Rana Tanveer Hussain, met with the Pakistan Sugar Manufacturers Association (PSMA) to discuss sugar pricing and distribution across the country. He emphasised the government’s commitment to making sugar affordable and announced a detailed plan for sugar distribution in every district, set to be implemented this week.
Special arrangements are planned for the upcoming holy month of Ramadan. Starting three days before Ramadan and continuing until the 27th, sugar stalls will be set up in each district to ensure ample supply and prevent shortages. Discounted sugar prices will be announced later this week to assist lower-income groups during this period. The minister highlighted that, in collaboration with provincial governments, these stalls will ensure sugar availability nationwide.
Rana Tanveer Hussain stressed the importance of providing essential commodities at reasonable prices during Ramadan, particularly for the less privileged. He assured that strict monitoring of sugar prices would be implemented to prevent any challenges during the holy month.
PSMA representatives informed government officials that Pakistan had over 1.7 million tons of surplus sugar in the 2024-25 period. The government permitted the export of 750,000 tons in 2024 and facilitated a government-to-government export of 40,000 tons to Tajikistan.
According to the cane commissioner’s report, local sugar consumption in 2024 totalled 6.764 million tons. Production that year reached 6.843 million tons, with Punjab contributing 4.37 million tons, Sindh 2.022 million tons, and Khyber Pakhtunkhwa (KPK) 447,000 tons. The country also had carryover stocks of 823,000 tons, resulting in a total of 7.664 million tons available.
PSMA officials said the price of sugarcane was fixed at Rs350 per 40kg in the previous year and rose to Rs450 per 40kg in 2023-24. The cost of production of sugar today is Rs170 per kg, while the consumer prices are around Rs150 per kg, which they claim is one of the lowest rates in the world.
The officials argued the removal of the 18% general sales tax could reduce the consumer price of sugar by at least Rs25 per kg.
In another development, the cabinet, led by Prime Minister Shehbaz Sharif, has put a price cap on sugar to regulate exports and prevent local price manipulation. The policy is that if the retail price of sugar is higher than the ex-mill price by more than Rs2, then exports are immediately halted. This measure will ensure price stability and prevent the exploitation of consumers in the market.
The government is committed to making essential commodities available at reasonable prices, especially during times of significance such as Ramadan.
