Islamabad/Lahore:
The government and the sugar industry have reached an agreement that has set the ex-noble price for sugar for RS165 per year. Kg, announced the Ministry of National Food Safety and Research Monday.
“All provincial governments will ensure the availability of cheap sugar to the public in the light of this decision,” a short statement from the ministry said.
Last week, PML-N approved the federal government approved the import of half a million tonnes of sugar in an attempt to maintain affordable prices on the product.
“The committee approved the import of up to 500,000 tonnes of sugar to ensure a stable supply and maintain affordable prices nationwide,” states a statement sent on X.
In March, Deputy Prime Minister Ishaq Dar noted that prices of retail sugar should not exceed RS164 after the Competition Commission in Pakistan (CCP) warned Sugar Mills against award manipulation.
Dar said, according to news reports, there was an increase in sugar prices for RS178-179, as he said, was “obviously not acceptable” for the prime minister.
In Lahore, sugar is currently sold at arbitrary prices ranging between RS190 to RS210 per day. Kg. Citizens complain that sugar is not available anywhere in the city for the official speed-rs180 per year. Kg.
Since last Friday, Sugar Mills in Sindh and Punjab has stopped the sugar supply to the markets, said the wholesale association chairman Rauf Ibrahim.
He said that with supply suspended in the last four days, only stored sugar is sold in Karachi, causing wholesale prices to rise from RS178-180 to RS182 per year. Kg and retail prices from RS190–195 to RS200 per Kg.
Ibrahim criticized the government’s lack of interest in cracking down on sugar factory owners and hamsters and warned that this negligence is burning price increases.
According to sources, a connection among sugar factory owners is the basic reason behind the rising prices. This powerful cartel has historically pushed the government to allow exports in the form of excess stock, which increases domestic prices.
Between 2015 and 2020, 2,355 million tonnes of sugar were allegedly exported to Afghanistan. However, Afghan government data is confirmed that only 1.5 million tonnes were received. 778,000 tons were smuggled without items found for this volume.
In recent years, 26 mills of billions in subsidies enjoyed the export of 400,000 tonnes of sugar. Documents show that sugar factories extracted RS4,12 billion in subsidies up to 2021.
In March, the price was set to RS140 per year. Kg. After exporting 750,000 tonnes, it increased to RS170 per year. Kg. The government then raised the Ex-Mill price with the RS20, but sugar crossed the RS200/kg in markets. In response, the government decided to import 500,000 tonnes of sugar.
However, the IMF conditions after 2021 prohibited subsidies for sugar exports. The government is now unable to subsidize the industry or set minimum sugar cane prices, as the IMF requires complete deregulation of the sugar sector.
