Pakistan: Govt-mills talks on sugar retail rate inconclusive
The government and Pakistan Sugar Mills Association have yet to finalize a retail sugar price, though officials stress it should stay near Rs170/kg. The ex-mill rate is fixed at Rs165/kg, but retail prices remain high. Meanwhile, the TCP has slashed its sugar import tender to 50,000 tonnes, aiming to stabilize domestic supply and prices.
ISLAMABAD: Talks between the Pakistan Sugar Mills Association (PSMA) and Minister for National Food Security and Research Rana Tanveer Hussain on Tuesday ended without a clear decision on the retail price of sugar, as market rates remain elevated.
Sources familiar with the meeting said a final decision on the retail price is expected in the next few days. However, it was emphasised during the meeting that the price should remain close to Rs 170 per kg. The PSMA chairman assured that sugar prices would decline within a day or two.
While the government claimed the PSMA has agreed to supply sugar at an ex-mill price of Rs165 per kg, the actual retail price for consumers remains unannounced. Observers noted that Monday’s agreement yielded substantial profit margins for mills, leaving consumers to bear the brunt of high retail rates.
Previously, for the 2023-24 crushing season, the ex-mill price was set at Rs140 per kg during the sugar export period under an agreement between the government and the industry. However, retail prices have surged nationwide, ranging between Rs180 and Rs200 per kg, while wholesale rates hover around Rs159.
TCP cuts import tender volume to 50,000 tonnes
According to a statement from the Ministry of National Food Security, the meeting “addressed the implementation of the government-notified ex-mill price of sugar and ensured its smooth availability in the market.” It added that the impact of the new ex-mill price is expected to be reflected in retail markets within the next two to three days.
The meeting also discussed enforcement mechanisms and steps to guarantee uninterrupted sugar supply across the country. PSMA representatives welcomed the government’s move and assured full cooperation in stabilising prices.
Mr Tanveer reaffirmed the government’s commitment to providing relief to the public, stressing that hoarding and profiteering would not be tolerated. He said an effective mechanism had been developed to curb artificial price hikes and ensure consistent supply. “Public interest remains our top priority,” he said, adding that the ministry would maintain close coordination with the sugar industry to uphold price stability.
Import tender volume cut
Meanwhile, according to a Reuters report, the Trading Corporation of Pakistan (TCP) has scaled back the volume of white refined sugar it seeks through an international tender to 50,000 tonnes, down from an initial range of 300,000-500,000 tonnes.
European traders said the deadline for submitting price offers has been extended to July 22, from the earlier date of July 18. The shipment is now expected to arrive in two consignments of 25,000 tonnes each, to be loaded between Aug 1 and 15. All sugar procured must arrive in Pakistan by Aug 30. The federal cabinet had approved the import of 500,000 tonnes of sugar on July 8 to ease pressure on domestic prices.
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Source : Dawn
