ISLAMABAD, Jul 31 (APP):Categorically dismissing reports of a sugar shortage due to exports as a misleading perception, Federal Minister for National Food Security & Research, Rana Tanveer Hussain asserted on Thursday that Pakistan continued to hold a surplus of the commodity and the government has implemented a system to ensure sugar remains available at officially fixed prices.
“A perception is being created as if there is a major issue regarding the availability, supply, or pricing of sugar,” the minister said while addressing a press conference. He added that the government has launched a crackdown on hoarders and profiteers, including retailers and even mill owners were being checked, to control manipulation in the market.
Referring to criticism over the government’s initial approval of sugar exports followed by import plans, Rana Tanveer said these narratives ignored historical trends and factual data. Citing records from the past ten years, he explained that sugar exports have traditionally been allowed soon after the crushing season and were occasionally followed by imports—except in one or two years.
The minister explained that the Sugar Advisory Board—which includes federal ministers, secretaries, representatives from all four provinces, and industry stakeholders—approved exports last year on basis of data. At the beginning of the season, Pakistan had an opening stock of 800,000 metric tons. The crushing season yielded 6.8 million metric tons of sugar, while the country’s annual domestic consumption stood at 6.3 million metric tons—leaving a surplus of 1.3 million metric tons.
“To prevent a supply glut that could harm both farmers and millers, the government had allowed gradual sugar exports,” he said. Contrary to concerns that exports would lead to domestic shortages or price hikes, the market experienced a decline in prices—from Rs138 per kg to Rs119 per kg—after the export decision in October 2024. “This proves that the export decision was not responsible for any artificial shortage or price inflation,” the minister added.
Rana Tanveer acknowledged that initial projections for the 2024–25 season estimated sugar production at 7 million metric tons, slightly higher than the previous year. However, climate change adversely impacted agricultural output, including sugarcane yield. As a result, actual production dropped to 5.8 million metric tons.
Responding to the shortfall, the Prime Minister ordered an immediate halt to further exports in January 2025. By the end of the crushing season on April 30, the total available stock—including a buffer of 0.5 million metric tons—stood at 6.3 million metric tons, which matches national consumption requirements. Currently, the country holds around 2 million metric tons of sugar—enough to meet consumption needs for the next three months.
The minister attributed recent price increases to market manipulation by mill owners, wholesalers, and hoarders, particularly following a rise in sugarcane procurement prices from Rs450 to Rs700 per 40 kg. He said the government intervened and negotiated with stakeholders to fix the ex-mill price at Rs165 per kg and the retail price at Rs173 per kg.
To ensure compliance, the government has launched enforcement operations against violators across the supply chain. “Implementation will take some time, but the system is in place and action is underway,” he said. Currently, retail prices have stabilized between Rs172 and Rs173 per kg, while ex-mill prices are holding at Rs165.
Rana Tanveer noted that sugar prices in Pakistan are broadly aligned with those in neighboring countries: India (Rs150/kg wholesale), Bangladesh (Rs187), Afghanistan (Rs173), and Iran (Rs250).
The minister added, Pakistan earned $402 million from the export of 750,000 metric tons of sugar last year. However, the minister acknowledged that earlier approval could have fetched higher export rates. To manage domestic availability, the government approved sugar imports of up to 500,000 metric tons, although only 300,000 tons are expected to be brought in, costing approximately $150 million.
Downplaying the sugar issue as overblown, Rana Tanveer urged media and policymakers to shift their focus toward strategic national developments.
“Our real priority should be landmark achievements such as the recent trade agreement with the United States,” he said. He also highlighted broader signs of economic recovery, citing improved foreign exchange reserves, a rising Pakistan Stock Exchange, and declining inflation rates as indicators of better economic management.