Sugar Prices Expected to Drop as PM Shehbaz Forms Committee
Prime Minister Shehbaz Sharif has formed a high-level committee to negotiate with sugar mill owners and reduce surging sugar prices, following a 19% increase this year. The committee, led by Deputy PM Ishaq Dar, aims to stabilize prices after exports soared, driving domestic costs up. The committee will engage with the Pakistan Sugar Mills Association (PSMA) to reach a fair price.
Islamabad – Prime Minister Shehbaz Sharif has taken decisive action to address the surging sugar prices by forming a high-level committee tasked with negotiating price reductions with sugar mill owners, aiming to provide relief to consumers.
The committee, led by Deputy Prime Minister Ishaq Dar, has been given the mandate to engage with the Pakistan Sugar Mills Association (PSMA) to bring down sugar prices after the government’s decision to allow sugar exports led to a massive increase in both exports and domestic prices.
Shehbaz’s move comes after sugar prices saw an alarming 19% surge this year, with the per-kilogram price reaching an average of Rs172 as of last Friday—Rs27 higher than the same week last year, according to the Pakistan Bureau of Statistics (PBS). The Food Security Ministry estimated that a Rs1 per kg increase extracts Rs2.8 billion from consumers’ pockets.
The Prime Minister’s Office has officially notified a 10-member committee with the goal of stabilizing sugar prices by negotiating with the PSMA. Notably, the Competition Commission of Pakistan (CCP) has previously investigated the PSMA for price manipulation. As the industries minister, Shehbaz now directly oversees sugar mills, placing added pressure on the sector to comply with government directives.
The committee, chaired by Dar, was instructed to submit its findings within three days. In its first meeting on Monday, officials informed sugar mill owners that the average sugar production cost was Rs153 per kg, urging them to lower market prices accordingly. However, the industry representatives requested time to consult with stakeholders before making any commitments.
One major factor behind the rising sugar prices was Shehbaz’s decision to allow sugar exports. The PBS data revealed that from July to February this fiscal year, Pakistan exported 757,779 metric tons of sugar—marking a staggering 2,190% increase from the 33,101 metric tons exported last year. The value of these exports reached $407 million, up 1,831% from the previous fiscal year.
The committee, which includes key ministers and PSMA representatives, will focus on negotiating a reasonable ex-mill price to curb inflation. Shehbaz has directed the committee to present a compliance report within three days, ensuring effective resolution of the sugar price crisis.
Meanwhile, the PSMA has defended itself against accusations of price manipulation, arguing that the surge in sugarcane prices has pushed up production costs. They insist that market forces, hoarders, and profiteers are driving the price hike, not exports.
The government’s efforts, led by Shehbaz, aim to stabilize sugar prices before the next crushing season begins, preventing further financial strain on consumers.
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Source : Pkrevenue.com
