The federal government has taken control of all sugar stocks in the country, assuming oversight of the supply chain from private mills. According to officials from the Ministry of Food Security, this move was made to combat the rising sugar prices and prevent an artificial shortage, The Express Tribune reported.Â
As part of this intervention, the government has stationed Federal Board of Revenue (FBR) officials at sugar mill warehouses across the country. Additionally, 18 sugar mill owners and associated individuals have been placed on the Exit Control List (ECL), with their names set to be made public soon. Officials stated that 1.9 million metric tons of sugar are now under direct government supervision.
The decision to seize control was prompted by concerns that private mills were contributing to the price hikes, which have severely impacted household budgets. The government has also implemented a comprehensive track and trace system to monitor the movement of sugar stocks.
The Pakistan Sugar Mills Association (PSMA) has pushed back against these claims, blaming the “stock mafia and hoarders” for the supply issues. They argue that the sugar industry has been operating at a loss for years, with 12 mills shutting down and now up for sale.
PSMA officials stated that the industry is supplying sugar at an ex-mill price of Rs165 per kg, and that there are enough stocks to last until mid-November 2025.
The PSMA emphasised that retail prices, which have reached up to Rs200 per kg, are beyond their control, as they are determined by market forces. They also acknowledged the government’s efforts to resolve the issue but suggested that some disruptions in the supply chain were caused by administrative interventions.
Pakistan received international bids on Thursday for 100,000 tons of sugar, with the lowest bid for purchasing 100,000 metric tons of white refined sugar reported at $539 per metric ton, including cost and freight (C&F), according to European traders.
The offer, submitted by trading house ED&F Man, covered 50,000 tons of fine grain sugar sourced from any origin. No purchase has yet been confirmed, as the offers from the Trading Corporation of Pakistan (TCP) are still under consideration.
Other notable offers included $567.40 per ton C&F for 25,000 tons of fine grain sugar by Dreyfus, and $599.00 per ton C&F for 30,000 tons of medium grain sugar from Al Khaleej Sugar.
Pakistan’s government had earlier approved the import of 500,000 tons of sugar to stabilise retail prices, following a sharp increase. The new tender seeks shipment between August 21 and September 15, with the aim of sugar deliveries reaching Pakistan by September 30.
