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• Food security minister confirms travel restrictions without naming mill owners
• Rebuffs impression of commodity shortage, says govt intends to deregulate sector
• PTI wants commission to probe scandal
• Govt receives $539 per metric tonne as lowest price for latest tender
ISLAMABAD: After failing to bring down prices of sugar, even after importing the commodity, the government has now taken a different approach to stabilise rates: punitive action against mill owners.
A number of sugar barons have been banned from travelling abroad as officials look for ways to coerce mill owners into helping them bring down prices, which have reached Rs200 per kg in some cities. The official price is Rs173.
Minister for National Food Security and Research Rana Tanveer Hussain confirmed that several sugar mill owners have been placed on the Exit Control List.
However, he didn’t identify these individuals, or say how many have been placed on the no-fly list.
Media reports also suggested the government has taken control of mills’ sugar stocks.
The government has faced intense criticism from the public and lawmakers of late over its failure to stabilise sugar prices and ensure the commodity’s availability.
The sugar crisis has become a recurring occurrence due to governance gaps and a lack of regulatory oversight.
It follows a set pattern where sugar mills — most of them owned by political families — get the government’s permission to export the commodity, citing bumper stocks. This is followed by a shortage in the domestic market, which hikes the price.
The government, in a bid to lower prices, imports the commodity, with mill owners making profits due to higher prices and the country losing already scarce foreign reserves.
A similar episode was repeated this year.
As prices started to rise, the federal cabinet, on July 4, authorised the import of 500,000 tonnes of sugar — almost a year after it allowed mills to export 150,000 tonnes. It was followed by an agreement between the government and the sugar industry, where the latter would supply the commodity to sellers at Rs165per kg.
But the deal failed to yield reduced prices.
Deregulation
Addressing a news conference in Islamabad on Thursday, Mr Tanveer, the food security minister, said there was no shortage of sugar.
He said the price distortion was a “manipulated hike” created by hoarders and speculators.
Pakistan has sufficient stocks to meet domestic needs, and the situation was “fully under control,” he said.
Mr Tanveer said the government intended to deregulate the industry — allowing market forces to determine the price.
The process of deregulation has started and the government wants to “come out of the sugar business”.
‘Historical practice’
The minister also defended the decision to allow exports, saying the government earned $402 million by exporting 750,000 metric tonnes of surplus sugar.
This decision was “not abrupt” and taken after “thorough verification of data” from the Federal Board of Revenue and other relevant departments.
He said the export of sugar has been a “historical practice spanning decades” and “not unprecedented”.
Mr Tanveer claimed the government had ensured a “strategic reserve” of 500,000 metric tonnes of sugar as a buffer stock to avoid any disruption in the domestic market.
Regarding sugar imports, the minister clarified that although permission has been granted to buy 500,000 metric tonnes, the government intends to import only up to 300,000 metric tonnes for $150 million.
“This decision was made solely to stabilise the market and avoid unnecessary speculation,” he said and denied there was any “real shortage” of sugar.
He said the current stock stood at 6.3m metric tonnes — 5.8m metric tonnes from this year’s production plus the buffer stock.
“This is sufficient to meet the annual domestic consumption requirement, which is also around 6.3 million metric tonnes,” the minister said.
Climate change impact
According to Mr Tanveer, the crushing of sugarcane was reported 7.4 million metric tonnes less as compared to the previous year.
He noted low crushing, a lower sucrose recovery rate, and climate change impacts have affected sugar production.
Although initial projections for sugar production stood at 7m metric tonnes, the final reserves reached 5.8m metric tonnes by the end of April.
‘Mega sugar scam’
Meanwhile, PTI has castigated the government for causing a loss of Rs287 billion to the national exchequer and demanded a commission to investigate the sugar crisis.
In a statement issued by the party’s media department here on Thursday, a PTI spokesperson said the crisis was a “well-orchestrated scheme of plunder backed by political elites, complicit state institutions and the ruling coalition”.
Tender bid
Separately, Pakistan received the lowest price of $539 per metric tonne on Thursday for its international tender to buy 100,000 metric tonnes of white refined sugar, European traders said in initial assessments.
According to Reuters, the offers from the TCP were still being considered and no purchase has yet been reported, they said. The lowest offer was said to have been submitted by trading house ED&F Man for 50,000 tonnes of fine grain sugar.
Published in Dawn, August 1st, 2025
