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Aftab Maken
ISLAMABAD: The Federal Government has ordered the import of 200,000 tons of sugar in a bid to stabilize prices and provide relief to the public, according to a spokesperson for the Ministry of National Food Security.
The spokesperson further stated that the sugar import process has entered its final stage following the opening of tenders. The sugar is being imported through a government-to-government arrangement. The first shipment of imported sugar is expected to arrive in Pakistan in early September.
According to the spokesperson, the primary objective of the import is to ensure the availability of sugar in the local market and maintain price stability. The official also mentioned that a successful discount was secured at the time of purchase in the international market. The arrival of the imported sugar is expected to help balance prices in the domestic market.
Sugar disappears from markets despite official price cap
Despite the government’s announcement of Rs173 per kilogram as the official sugar price, the commodity has started to disappear from markets in Lahore. Although shopkeepers display the official price, sugar remains unavailable at many outlets.
Traders in Lahore’s Akbari Mandi claim that sugar mills are not releasing sugar for sale. On the other hand, sugar dealers have expressed concerns that prices and shortages may worsen in the coming days.
Currently, sugar is being sold at prices ranging between Rs180 and Rs190 per kilogram in Lahore markets. In Islamabad, sugar is being sold at Rs195 per kilogram.
Crackdown against hidden sugar stocks
The government has set a deadline for sugar mills to begin crushing by the first week of November and has also ordered a crackdown on hidden sugar stocks.
In case the mills fail to start crushing on time, the government plans to increase sugar imports from 200,000 tons to 500,000 tons. Officials have warned that if crushing is delayed, the country could face a shortfall of 260,000 tons of sugar.
The Ministry of Food has already been granted permission to import up to 500,000 tons of sugar. However, if crushing begins as scheduled, only 300,000 tons will be imported. According to ministry officials, domestic demand for August, September, and October is 1.62 million metric tons. A delay in crushing would raise the required stock level to 2.16 million tons.
Officials added that around 200,000 to 250,000 tons of sugar are typically available in the market. Provincial governments have been instructed to identify and take action against hidden sugar stocks.
The authorities have also directed that FIRs be registered against sugar dealers involved in hoarding. The government has already taken control of 1.9 million tons of sugar stocks, although concerns remain that some dealers are still holding undisclosed reserves.
According to the Ministry of Food, provincial authorities have been instructed to take action indiscriminately. The country’s monthly sugar consumption currently stands at 540,000 tons. The available stock of 1.9 million tons is sufficient for three and a half months. With the planned import of 300,000 tons, officials say there will be no sugar shortage in November.
