Pakistan : Steering committee approves govt’s plan to import 500,000 metric tonnes of sugar
Pakistan’s steering committee has approved the import of 500,000 metric tonnes of sugar via the Trading Corporation and private sector to stabilise soaring domestic prices. The move follows controversial exports earlier this year that caused supply shortages and price spikes. Critics blame poor planning, as sugar now retails up to Rs190/kg, far above the official Rs164/kg cap.
The steering committee on the import of sugar on Tuesday allowed the import of 500,000 metric tonnes of sugar through both the Trading Corporation of Pakistan (TCP) and the private sector.
Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar chaired a follow-up meeting of the steering committee on the import of sugar.
Following earlier deliberations, the committee confirmed the decision to import 500,000 metric tonnes of sugar through both the Trading Corporation of Pakistan (TCP) and the private sector.
The deputy prime minister emphasised the government’s commitment to ensuring a stable supply of essential commodities at affordable prices.
The meeting was attended by Minister for National Food Security Rana Tanveer Hussain, SAPM Tariq Bajwa; Chief Secretaries of Khyber Pakhtunkhwa, Sindh, and Balochistan; Secretaries of Food Security & Industries; as well as other senior federal and provincial government officials.
On June 23, the Sugar Advisory Board approved the import of 500,000 metric tons of sugar, just months after allowing the export of nearly the same quantity, a decision that contributed to record-high domestic prices.
The Sugar Advisory Board claimed the import decision was necessary to stabilise prices and ensure market availability.
However, economic observers and political opponents are questioning the government’s credibility and competence in managing essential commodities, describing the situation as a self-inflicted policy failure.
According to the Pakistan Bureau of Statistics (PBS), Pakistan exported 765,734 metric tons of sugar between July and May of the current fiscal year, earning Rs114 billion, a massive 2,200% increase over the previous year.
However, the move drastically shrunk domestic supply and sent prices soaring, with sugar now retailing between Rs170 and Rs190 per kilogram, compared to Rs140–Rs150/kg before exports were approved.
The official retail price of Rs164/kg, set in March, has largely remained ineffective, with the government unable to enforce it despite earlier price agreements with the Pakistan Sugar Mills Association (PSMA), a group that has repeatedly been accused of cartel-like behavior by the Competition Commission of Pakistan (CCP).
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Source : Profit Pakistan Today
