Govt draws line on sugar prices, violators to face strict action

• PM chairs high-level meeting on sugar supply, pricing.
• Ex-mill price fixed at Rs165/kg, retail capped at Rs173/kg.
• Crackdown on hoarders and market manipulators underway.
  

Prime Minister Muhammad Shehbaz Sharif on Wednesday warned that any violation of the agreed sugar prices would lead to severe action, as no one would be allowed to exploit the public economically.

The prime minister chaired a high-level meeting focused on sugar pricing and availability across the country. 

The meeting underscored the government’s commitment to ensuring fair prices and protecting citizens from economic exploitation.

During the session, the prime minister issued strict directives for the enforcement of the agreement reached between the Pakistan Sugar Mills Association (PSMA) and the government. 

According to the agreement, the ex-mill price of sugar is set at Rs165 per kilogramme, while the retail price must not exceed Rs173 per kilogramme.

Officials also briefed the prime minister on ongoing operations against those involved in creating an artificial shortage of sugar. 

The government reiterated its resolve to continue cracking down on hoarders and market manipulators.

The prime minister emphasised that the administration would not tolerate any attempts to disrupt the supply or inflate the price of essential commodities, particularly sugar.

Pakistan’s sugar crisis has worsened as markets in Lahore and Islamabad reported severe shortages, while prices in Karachi, Peshawar and Quetta surged to as high as Rs190 per kilogramme, defying official price caps, The News reported on Monday.

Amid the escalating crisis, Federal Minister for National Food Security and Research Rana Tanveer Hussain earlier this week chaired a high-level meeting with the Pakistan Sugar Mills Association (PSMA) and provincial stakeholders, warning of “strict oversight” of mill stocks.

On July 22, the minister had issued a stern warning after reports emerged that several mills were not only overcharging but had also halted the market supply of the sweetener. 

Despite this, the situation did not improve. Notably, on July 14, the PSMA and the Ministry of National Food Security inked the agreement to ensure ex-mill supplies at Rs165/kg from July 15 to August 15 (for the first month), then with an addition of Rs2/kg every successive month till October 15.

Notably, official rates, fixed at Rs165 per kg ex-mill and Rs173 retail, have largely been ignored nationwide. Wholesale prices range between Rs174 and Rs178, while retail rates hover between Rs180 and Rs190.

Reports from Lahore and Islamabad show sugar vanishing from shelves, forcing consumers to visit multiple shops in search of supplies, fueling concerns about hoarding and stockpiling. 

The ministry reiterated its commitment to transparent stock management, price stabilisation and protection of both consumer and producer interests.