LAHORE: Pakistan Sugar Mills Association (Punjab Zone) spokesman has said that sugar prices in the market have not increased due to exports.
In a statement, he said that some unfounded misconceptions have been raised in media by linking sugar price hikes with sugar exports without establishing facts. Some media reports are circulating that sugar export policy of the government was flawed and has backfired as prices began rising following the export of sugar.
He further stated that the industry agreed that ex-mill sugar prices would remain capped at Rs 140 ex-mill per kg during export period which was below its cost of production.
However, due to huge surplus stocks, the ex-mill prices remained between Rs 120 to Rs 125 per kg, much below this benchmark, continuously for many months.
Almost 50 percent of total available sugar was sold much below its cost of production causing massive losses to the industry. No sugar exports have taken place since January 2025 while sugar prices increased much later.
Reiterating the stance, the PSMA spokesman said that the price mechanism is dependent on market forces. Real beneficiaries of artificial price hike of sugar in retail market are Satta Mafia, hoarders and profiteers (Karyana Merchants) who spread rumours to influence the market forces to gain undue profits on sugar available with them.
The industry anticipates no white sugar imports are needed, as domestic stocks are enough to meet our domestic requirement till start of next crushing season. PSMA, however, endorses import of raw sugar through a policy mechanism and has submitted its proposals to a Ministerial Committee constituted by the government.
PSMA at the same time calls for complete deregulation of sugar sector, allowing sugar to follow free-market principles as are prevailing in rice and maize sectors for the benefit of farmers and our agricultural economy.
Copyright Business Recorder, 2025
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