Govt finalises sugar import decision as prices soar

• Sugar price rises Rs6/kg in Lahore market.
• Quetta rate increases by Rs5 per kilogramme.
• Govt blames traders for broken price promises.

ISLAMABAD: The federal cabinet has given final approval for the import of 500,000 tonnes of sugar through the public sector, the Ministry of National Food Security said on Tuesday.

In a statement, the ministry noted that all arrangements for the import process have been finalised and immediate implementation was underway, adding that the decision aims to stabilise domestic sugar prices amid growing concerns over market volatility.

It added that the latest import plan reflects a more effective and improved strategy compared to past practices. “Unlike previous years, when artificial shortages were created to justify subsidies, this import initiative is driven by the need for genuine market correction,” the ministry added.

It further said that the earlier decision to allow sugar exports was taken when domestic supplies were abundant. “Now, in light of price hikes, importing sugar is necessary to restore market balance,” the ministry concluded.

Meanwhile, market prices continue to surge. In December 2024, sugar’s ex-mill rate was Rs125–130 per kilogram. It now stands at Rs190–200 per kilogram in retail markets.

In the latest surge, prices in Lahore increased by Rs6 per kg, reaching Rs190, while in Quetta, prices rose by Rs5 to match the same level. Karachi has recorded the highest rate so far, with sugar being sold for up to Rs200 per kilogram.

Traders had previously assured the government that prices would remain stable following export permission. They also claimed that there would be no need to import sugar in 2025. However, these assurances have not held up, forcing the government to act under pressure to control inflation. 

Last month, the Sugar Advisory Board — headed by Federal Minister for National Food Security Rana Tanveer Hussain — approved the import of 500,000 tonnes of sugar, just months after allowing 750,000 tonnes in exports from June 2024 to January 2025.

Minister Rana Tanveer Hussain said, “disruption in the supply chain and non-compliance by mill owners have created volatility and contributed to price hikes. The increased price of sugar is not only affecting households directly but is also impacting the cost of a wide range of food items across the board, placing an additional burden on ordinary citizens.”

However, the timing of the import approval has raised questions. Analysts and consumer advocates argue that the government’s short-sighted policy — first allowing exports despite looming supply constraints — has now forced it to reverse course at the cost of public funds and consumer trust.