ISLAMABAD: Deputy Prime Minister Ishaq Dar on Wednesday said that retail sugar prices should not exceed Rs164 after the Competition Commission of Pakistan (CCP) warned sugar mills against price manipulation, reported Dawn.com.

Contrary to the rates announced by the prime minister and several government attempts to maintain retail sales at Rs130 per kg, sugar prices in the markets continue to soar above Rs180 per kg in various markets across the country.

Sugar consumption is forecast to increase slightly to 6.7 million tonnes as it has continuously grown due to the population growth and demand from the food processing sector.

During the last season, Pakistan produced more than 6.84m tonnes of sugar, which is expected to rise in 2024-25.

Speaking to journalists, the deputy prime minister said that according to news reports, there was a spike in sugar prices to Rs178-179, “which is obviously not tolerable” to the prime minister.

“So yesterday we had a late night meeting so we could conclude this matter — so we can together find a viable way in which a common citizen can find relief and he doesn’t have to hear talks of [sugar prices] reaching Rs180 to Rs200,” he said.

“And we reach a reasonable price where you don’t suffer losses either — [so] a subcommittee is being made for the numbers which Rana Tanveer sahab [minister for national food security and research] will head.”

Mr Dar said the committee will work until April 19 to determine costs and provide feedback on the sugar mills’ claims — that they were not responsible for the price hike of the commodity.

He also added that they needed to work on a system so that the “common man can have cheaper sugar … but for that, we would need a distribution channel, and an implementation mechanism is necessary”.

On the Federal Board of Revenue (FBR)’s sales tax on sugar, he said it would be charged at Rs154 to 155 — with the price cap at Rs159.

He said that the government will work to gather intelligence reports, along with the CCP, which will also collect data.

Given this alleged massive siphoning from the consumers, the CCP had stated that it was closely monitoring the ongoing sugar crisis and warned that strict enforcement and policy actions would be taken if any anti-competitive activities were found.

The CCP has been working to curb cartelisation in the sugar industry, promoting fair competition and protecting consumers.

“We need to ensure a two-tier system, and if the government is satisfied that we can implement it, the advantage will be that the common man can get sugar at a lower price,” Mr Dar said.

The CCP inquiry launched in 2020 revealed that sugar mills were prima facie engaged in price-fixing and controlling supply through coordinated actions facilitated by the Pakistan Sugar Mills Association (PSMA).

Published in Dawn, March 20th, 2025