Sugar supply: PSMA blames govt policies for disruptions

LAHORE: The Pakistan Sugar Mills Association (PSMA) has alleged that it is receiving complaints from sugar mills situated in different districts that the district administrations concerned are forcing the mills to sell sugar only to government-nominated dealers and are not allowing direct sales to the markets. These measures are creating further sugar supply chain issues in the market.

Besides, it said, with regards to the news circulating about the rising prices of sugar that the government was being informed through various letters and press releases since early October about unnecessary sugar imports and that the FBR portals should be kept open for continuous supply of sugar in the market.

In a statement issued on Tuesday, a PSMA spokesman said the first such letter to the government was written on October 4, while the second and third letters were written on October 9 and October 15 respectively. It was clearly stated in the letters that the government must lift ban on closure of FBR portals at the earliest so that supply of local quality sugar continues in the market and prices remain stable. But the portals remain closed in order to sell low quality imported sugar, which led to shortage of sugar in the market and prices started rising, for which the sugar industry is neither the beneficiary nor responsible.

Ever since the sugar industry has been drawing the government’s attention to this important issue and if the industry’s requests had been taken into consideration then the current situation would not have arisen. The sugar supply chain was disrupted which is causing prices to rise.

Meanwhile, according to the Secretary Punjab Commodities and Price Department, Punjab has more than 22,000 metric tons of sugar available in stock and ample supplies in the market, Secretary Price Control and Commodities Management Department Dr Kiran Khurshid said while chairing a meeting to review prices of sugar and other essential commodities.

She stated that some profiteers are artificially creating a sense of shortage to sell sugar at higher rates. She said strict action is being taken against such elements, and imported sugar is also being supplied in the market to ensure price stability.

She added that sugar mills will begin crushing sugarcane in the coming days, which is expected to further reduce sugar prices. Dr Khurshid said the department is closely monitoring sugar prices and supply across the province, noting that sugar is currently being sold between Rs179 and Rs200 per kilogram.

Sharing details of the crackdown, she said that since July, a total of 494 cases have been registered against sugar hoarders and profiteers, with 3,673 individuals arrested and fines amounting to Rs50.85 million recovered.

She directed price control magistrates to ensure uninterrupted supply of essential commodities at fixed prices and to show zero tolerance against hoarders and profiteers.

Copyright Business Recorder, 2025