The government has warned of stern action against sugar mills for violating the agreement on the sugar price cap of Rs 165 per kilogram, as some mills have been reported not only overcharging but also halting the supply of sugar in the market.
According to media reports, Federal Minister for National Food Security and Research, Rana Tanveer Hussain, chaired a meeting on Tuesday to discuss the issue, expressing serious concerns over the sector’s non-compliance.Â
“The government will not tolerate market distortion at the expense of consumers,” the minister stated, vowing to take strict action against profiteering, hoarding, and price manipulation.
On July 14, the Pakistan Sugar Mills Association (PSMA) and the Ministry of National Food Security reached an agreement that set the ex-mill sugar price at Rs165/kg from July 15 to August 15. The agreement also outlined a Rs2 per kilogram increase every month until October 15.Â
However, despite this arrangement, reports surfaced indicating that several mills were defying the agreed price, causing artificial price hikes ahead of the peak demand season.
During the meeting, attended by PSMA officials, provincial agriculture departments, and key industry stakeholders, Minister Tanveer Hussain was informed by the Federal Investigation Agency (FIA) that some mills had halted their sales in the past few days, exacerbating the sugar shortage and contributing to price inflation. Despite questioning the millers, particularly those who had signed the agreement, the minister was not satisfied with their responses.
“If PSMA fails to ensure compliance among its members, a nationwide crackdown will begin,” Hussain warned, adding that violators would face legal action in coordination with the Federal Board of Revenue (FBR) and provincial food authorities. He directed provincial governments to submit enforcement reports within 24 hours and to bolster district-level monitoring to detect and prevent illegal activities within the sugar supply chain.
The minister emphasised the importance of transparency and fair distribution to protect consumer rights, reaffirming the government’s commitment to price stability. “The uninterrupted supply of sugar at fair prices is non-negotiable,” he concluded.
