Govt, millers agree to fix ex-mill sugar price at Rs165 per kg
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- Web Desk
- Jul 14, 2025
ISLAMABAD: The government and the millers on Monday reached an understanding to fix the ex-mill sugar price at Rs165 per kilogramme, the Ministry of National Food Security and Research said.
In the light of this decision, the ministry said, the provincial governments would ensure the availability of sugar at the affordable prices to the consumers.
SUGAR EXPORT-IMPORT CIRCLE
The move comes after sugar prices skyrocketed in Pakistan due to the shortage which was produced by the government’s earlier decision to allow the sugar exports.
As a result, the millers managed to earn huge profits by exporting around 750,000 millions tonnes of sugar.
However, the move backfired like the past years, as the government could not fulfil the promise that there would be no sugar shortage in Pakistan after the exports.
It’s not a surprise that people are now questioning the wisdom behind the export-import practice. But the the government representatives are citing the 2013-18 sugar prices in 2025.
SUGAR EXPORTS ARE GOOD
Earlier, the sugar exports were justified as part of the rising trend of food exports to earn precious foreign reserves given that the industrial sector hasn’t been able to meet the targets through enhanced production and value addition.
In December last year, Prime Minister Shehbaz Sharif had proudly stated that Pakistan had earned $500 million through the export of surplus sugar.
Currently, the sugar prices have reached up to Rs200 per kg in the market at a time when the people are already grappling with an unprecedented purchasing power crisis.
With the citizens concerned over higher energy tariffs and increase in fuel prices, the rising sugar prices has further fuelled the anger.
Meanwhile, the vegetable prices have also jumped in the recent weeks thanks to the seasonal factors, including the monsoon rains.
SUGAR IMPORTS ARE NECESSARY
To deal with the self-generated crisis, the government last month decided in favour of sugar imports, a practice witnessed in the past too repeatedly.
And last week, the federal cabinet formally approved import of 500,000 tonnes of sugar “to stabilize prices and prevent market manipulation”.
Later on Friday, the government invited global suppliers to bid for up to 500,000 metric tonnes of white refined sugar through the Trading Corporation of Pakistan (TCP).
The sugar can be sourced from any country, and the minimum offer size is 25,000 tonnes. Shipments will begin in August, and all deliveries must reach Pakistan by September 30.
