ISLAMABAD: The government has decided to import 750,000 metric tonnes of sugar despite having exported nearly the same amount during the current fiscal year, a move that has caused domestic sugar prices to surge, benefiting sugar millers. This decision has raised questions about the rationale behind the earlier approval of sugar exports, which critics warned would reduce local supply and drive prices higher.
Deputy Prime Minister Ishaq Dar announced that a policy for importing 250,000 metric tonnes of raw sugar will be submitted to the cabinet for approval, while 500,000 metric tonnes of refined sugar already have in-principle approval. According to the Pakistan Bureau of Statistics (PBS), Pakistan exported 765,734 metric tonnes of sugar from July to May, earning Rs114 billion—a 2,200% increase compared to last year.
Following exports, sugar prices in the domestic market soared to Rs190 per kilogram, Rs50 higher than before. The Ministry of National Food Security maintains there are sufficient stocks, and imports aim to reduce prices.
In March, the government set the retail sugar price at Rs164 per kilogram, 13% higher than the price cap during export approval, allowing millers significant profits. Dar also said the Ministry of National Food Security will seek formal approval from the Economic Coordination Committee for the imports.
Sugar mills reported current stocks at 2.8 million tonnes, enough to last until November, but the government’s import plan suggests the shortage is more serious or consumption higher than expected.
Experts criticized the export decision, claiming it favors millers at consumers’ expense and contradicts free-market policies. PSMA also proposed measures to curb smuggling and start the crushing season earlier to manage shortages.
