Food Security Minister Denies Sugar Shortage Amid Rising Prices

ISLAMABAD:
Federal Minister for National Food Security and Research, Rana Tanveer Hussain, reassured on Monday that there is no sugar shortage in the country, as reported by state-run Radio Pakistan.

During a press briefing, Hussain dismissed claims that sugar was being sold at Rs180 per kilogram, contradicting reports from various markets. Despite the government’s efforts to regulate prices and maintain retail rates at Rs130 per kg, the cost of sugar continues to exceed Rs180 per kg in several areas.

To address the escalating prices, Prime Minister Shehbaz Sharif has formed a 10-member committee, headed by Deputy Prime Minister Ishaq Dar, to hold negotiations with the Pakistan Sugar Mills Association (PSMA) in an effort to bring down prices.

Dar has previously stated that sugar should not cost more than Rs164 per kg. Analysts attribute the recent surge in prices to excessive sugar exports over the past year, which amounted to 700,000 tonnes.

According to projections, sugar consumption is expected to rise slightly to 6.7 million tonnes due to population growth and increased demand from the food processing sector.

At a Sugar Advisory Board meeting chaired by Hussain in late February 2025, officials revealed that Pakistan’s sugar production for the 2024-25 season is likely to reach 6.8 million tonnes, a slight increase from the previous year. The projected consumption stands at 6.6 million tonnes, with some existing stock in circulation.

In response to the situation, the government has tasked the Federal Investigation Agency (FIA) and the Competition Commission of Pakistan (CCP) with investigating market trends and gathering intelligence reports. The CCP has once again been directed to curb cartelization and price manipulation within the sugar industry. However, previous inquiries and legal proceedings against anti-competitive practices in the sector have faced significant enforcement challenges and legal roadblocks.

Today, Hussain reaffirmed that the government will not allow sugar prices to exceed Rs164 per kg, while the ex-mill rate will be capped at Rs159 per kg. He also warned that strict action would be taken, in collaboration with provincial authorities, against any attempt to increase sugar prices unjustly.

Additionally, he highlighted that the PSMA had established distribution stalls at the tehsil level during Ramazan, where sugar was made available at Rs130 per kg. Meanwhile, at Utility Stores, the commodity is currently being sold at Rs153 per kg.

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Frequently Asked Questions (FAQs)

1. Is there a sugar shortage in Pakistan?
   According to the Food Security Minister, there is no shortage of sugar in the country, despite rising prices in the market.
2. Why are sugar prices increasing?
   The primary reason behind the price hike is excessive sugar exports over the past year, which have impacted domestic supply.
3. What steps is the government taking to control sugar prices?
   The government has formed a 10-member committee to negotiate with sugar mill owners and has directed the FIA and CCP to investigate market manipulation.
4. What is the official government rate for sugar?
   The government has set the retail price at Rs164 per kg, while the ex-mill price is capped at Rs159 per kg.
5. Where can sugar be bought at lower prices?
   During Ramazan, PSMA set up stalls at the tehsil level offering sugar at Rs130 per kg, and Utility Stores are currently selling it for Rs153 per kg.