ISLAMABAD — In a bid to rein in rising sugar prices, the federal government and the Pakistan Sugar Mills Association (PSMA) on Tuesday reached an agreement to fix the ex-mill price of sugar at Rs165 per kilogram, aiming to stabilize the market and ensure steady supply ahead of the next crushing season.
The development came during a high-level meeting chaired by Federal Minister for National Food Security & Research, Rana Tanveer Hussain. The meeting was attended by top PSMA leadership and senior officials from the ministry.
Under the agreement, sugar millers have pledged full cooperation and committed to supplying sugar at the notified ex-mill rate of Rs165/kg. Both sides mutually agreed that the effect of this price cap would become visible at the retail level within the next two to three days.
“The government is fully committed to providing relief to the public,” said Minister Hussain, vowing that any violations in pricing or hoarding would be dealt with strictly. “Strict enforcement of retail pricing will be ensured and any profiteering will not be tolerated.”
The ministry has also introduced a monitoring mechanism to prevent artificial inflation and hoarding in the sugar supply chain. The minister emphasized that protecting consumers from sudden price spikes remains the government’s top priority.
Officials said the agreement represents a key step in building confidence between the government and the sugar industry, following months of volatility in the sugar market triggered by policy reversals, high transportation costs, and a weaker rupee.
Earlier this month, the government also slashed the volume of sugar it planned to import from 100,000 to 50,000 tons, aiming to balance fiscal responsibility with domestic price controls amid growing scrutiny of subsidies and import waivers.
Market watchers say the current move signals a more coordinated price management strategy, after previous decisions — such as the controversial permission to export sugar in late 2024 — were blamed for creating local shortages and fueling price hikes.
With this pricing agreement now in place, authorities hope to see a softening of retail sugar prices, which recently touched Rs200/kg in some urban markets, putting pressure on household budgets. The government says it will continue consultations with stakeholders to ensure long-term price stability and sufficient stock levels.
