The Ministry of National Food Security has confirmed that it has ordered the import of 200,000 metric tons of sugar to stabilize domestic prices and provide relief to consumers. This step was taken to ensure a stable supply of sugar in the market and to prevent artificial price hikes.
Details of the Import
A spokesperson for the ministry stated that the government is directly handling the import. The procurement process is in its final phase after the opening of tenders, and the first shipment is expected to arrive in early September.
Officials emphasized that the decision to import was made after securing a favorable discount on the international market, ensuring that the move will not burden the national treasury. The government hopes this influx of imported sugar will stabilize local markets and curb the inflationary trends affecting this essential household item.
The Domestic Crisis and Government’s Response
This announcement comes amidst a worsening sugar crisis in Pakistan. According to reports from The News, there are severe shortages in Lahore and Islamabad, and prices in Karachi, Peshawar, and Quetta have soared to as high as Rs190 per kilogram, far exceeding official price caps.
In response to the crisis, Federal Minister for National Food Security and Research, Rana Tanveer Hussain, chaired a high-level meeting with the Pakistan Sugar Mills Association (PSMA) and provincial stakeholders. Prime Minister Shehbaz Sharif also issued a warning, stating that anyone violating the agreed-upon sugar prices would face strict action.
An agreement between the PSMA and the government has set the ex-mill price of sugar at Rs165 per kilogram, with the retail price not to exceed Rs173 per kilogram. The government has reiterated its commitment to cracking down on hoarders and market manipulators.
The government has also previously taken extraordinary measures to control prices and hoarding, including reportedly seizing 1.9 million tons of sugar from private mills and placing 18 sugar barons on the Exit Control List (ECL). However, the PSMA’s chapters in Punjab and Khyber Pakhtunkhwa have denied that the government seized any stocks.
