ISLAMABAD: Federal Minister for National Food Security and Research Rana Tanveer Hussain on Thursday said the government has decided to deregulate the sugar sector in a move aimed at stabilising the market.
Addressing a press conference, he said that deregulation of the sugar sector includes prices, export and import. Under the deregulation, the government will not intervene in pricing, procurement, or supply mechanisms, allowing the private sector to operate freely.
Dispelling rumours of sugar shortage and inflated prices, Hussain assured that sufficient sugar stock is available across the country.
PSMA urges Pakistan govt to deregulate sugar industry
He said that following reports of rising market prices, the government signed an agreement with sugar mills on July 14, fixing the ex-mill price at Rs165 per kg, with the retail price currently averaging Rs173 per kg.
He emphasised that strict action is being taken against hoarders and profiteers attempting to create artificial shortages.
“The system is in place, and implementation is underway,” he said, adding the government has the name of some sugar mills owners on the exit control list (ECL).
The minister said the country’s sugarcane output for 2024–25 was initially projected at seven million metric tons, but climate-related disruptions caused a decline to 5.8 million metric tons. In response, Prime Minister Shehbaz Sharif ordered an immediate halt to sugar exports in January 2025 to safeguard domestic supply, he said.
He said that by the end of the crushing season on April 30, the total available stock, including a buffer stock of 0.5 million metric tons, stood at 6.3 million metric tons—just enough to meet annual national consumption needs.
Currently, the country holds about two million metric tons of sugar, sufficient to meet demand for the next three months, the minister said.
Defending the government’s earlier decision to allow sugar exports, Hussain said that such trade has been routine over the past decade, both in exporting surplus and importing when needed. He noted that the Sugar Advisory Board (SAB)—comprising federal ministers, secretaries, provincial representatives, and industry stakeholders—had approved exports last year based on available data.
At the beginning of the previous sugar season, the country had an opening stock of 800,000 metric tons, with production reaching 6.8 million metric tons against domestic consumption of 6.3 million metric tons, creating a surplus of 1.3 million metric tons.
“Exports were allowed to protect farmers and millers,” he said, adding the market witnessed a price drop from Rs138/kg to Rs119/kg following the export decision in October 2024.
He said the government has launched a crackdown against violators across the supply chain. Implementation will take some time, but the system is in place and action is underway, he said.
According to Hussain, Pakistan earned $402 million by exporting 750,000 metric tons of sugar last year. To ensure domestic availability, the government also approved imports of up to 500,000 metric tons, although only 300,000 tons are expected to be brought in at an estimated cost of $150 million.
“The government remains committed to ensuring stability in the sugar sector while protecting the interests of both consumers and producers,” the minister said.
Copyright Business Recorder, 2025
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