Sugar and other essential commodities: ECC concerned over continuous rise in prices

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has expressed serious concerns over the continuous rise in the price of sugar and other essential commodities.

At a recent ECC meeting, Finance Minister and ECC Chairman, Senator Muhammad Aurangzeb, raised alarm over the increasing sugar price during the ongoing crushing season.

The committee also discussed factors such as low sugar recovery and lower-than-expected crop yields, attributed to adverse climatic conditions, as possible reasons behind the surge in sugar prices. Furthermore, it was suggested that sugar, cooking oil/ghee, pulses, and other essential commodities should be provided to the public at reduced prices through Sasta / E-bazaars during the month of Ramadan.

Prices of essential food items remain high

The ECC has directed the Ministry of National Food Security & Research, along with the Ministry of Industries & Production and the National Price Monitoring Committee, to take necessary measures to address the rising prices of sugar, pulses (especially moong), and cooking oil/ghee ahead of Ramadan. The Ministry of National Food Security & Research has been instructed to submit a report on the matter within a week.

Over the past three months, the price of refined sugar has increased by Rs 1,100 per 50-kg bag and Rs 22 per kg. The retail price has risen from Rs 133 per kg in November to Rs 155 per kg, prompting the government to take steps to stabilize commodity prices.

On February 11, 2025, the Minister for National Food Security and Research held a meeting with sugar millers to convey the government’s concerns regarding the price hike during the ongoing crushing season. Rana Tanveer announced that discounted sugar prices would be announced later this week, aimed at ensuring that especially lower-income groups have access to affordable sugar during Ramadan. He emphasized that with the cooperation of provincial governments, sugar stalls would be set up across the country to ensure easy access to sugar in all regions.

During the meeting, representatives from the Pakistan Sugar Mills Association (PSMA) informed government officials that Pakistan has an excess of over 1.7 million tons of sugar for the 2024-25 season, which should have been exported. The government had approved the export of 750,000 tons of sugar in 2024 and allowed 40,000 tons for government-to-government export to Tajikistan. According to the Cane Commissioner’s report on sugar offtake and consumption, a total of 6.764 million tons of sugar was consumed locally in 2024.

In total, Pakistan produced 6.843 million tons of sugar in 2024, with 4.37 million tons produced in Punjab, 2.022 million tons in Sindh, and 447,000 tons in Khyber Pakhtunkhwa (KPK). The country also had 823,000 tons of carryover sugar stocks from the previous season, with 517,000 tons held by Punjab mills, 191,000 tons by Sindh mills, and 115,000 tons by KPK mills. This brought the total sugar stock to 7.664 million tons.