Prime Minister Shehbaz Sharif has formed a 10-member committee, led by Deputy PM Ishaq Dar, to negotiate sugar price reductions with the Pakistan Sugar Mills Association (PSMA). The move comes after sugar prices surged to Rs172 per kg, marking a Rs27 increase compared to last year. The government aims to stabilize prices, particularly during Ramazan, after allowing sugar exports, which contributed to the sharp rise.
The committee held its first meeting and informed millers that the production cost averaged Rs153 per kg, urging them to lower prices. However, sugar industry representatives requested time to consult stakeholders before making a commitment. Officials reported that a Rs1 per kg increase benefits millers by Rs2.8 billion, meaning they have gained an additional Rs76 billion since the crushing season began.
Data from the Pakistan Bureau of Statistics (PBS) revealed that sugar exports soared by 2,190% this fiscal year, reaching 757,779 metric tons. The increase in exports generated $407 million in revenue but also contributed to domestic price hikes. The PSMA, however, denies that exports caused the price surge and instead blames hoarding and market manipulation.
The committee, including key ministers and PSMA representatives, has been instructed to submit a report within three days. The government is determined to resolve the issue quickly, ensuring market stability. While the PSMA claims sugar stocks are sufficient, it supports importing raw sugar under a regulated policy to manage costs effectively.
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