ISLAMABAD: Following the local refined sugar prices touching Rs8,400 per 50-kg from Rs6,100 per 50-kg bag within the past four months, the government has now started pondering over importing sugar to stabilise the commodity prices.
In this connection, a high-level meeting of a committee on the import of raw sugar constituted by Prime Minister (PM) Shehbaz Sharif was held here on Wednesday under the chairmanship of Federal Minister for Industries and Production, which was also attended by Minister of Petroleum Ali Pervaiz Malik, Minister of Industries Haroon Akhtar, and other senior officials.
According to Business Recorder’s weekly price data on November 10, 2024, sugar price in the wholesale market was Rs6,100 per 50kg bag or Rs122 per kg, which in retail was being sold in the range of Rs130/140 per kg, while now it is available at Rs8,400 per kg or Rs168 per kg in the wholesale market and in retail is being sold in the range of Rs170-180 per kg.
The trend depicts an increase of Rs2,300 or Rs46 per kg in wholesale market and Rs50 per kg increase in retail sugar price over the past four months.
During the meeting, key matters related to the import of raw sugar were discussed in detail. Federal Minister Rana Tanveer Hussain emphasised that importing raw sugar could help stabilise the price of domestically refined white sugar.
The committee conducted a comprehensive discussion on the feasibility, benefits, and potential concerns regarding raw sugar imports. Different international models were reviewed to assess their impact on price stability and public welfare.
Hussain instructed the concerned authorities to conduct an in-depth study to determine the modalities and implications of raw sugar imports on local growers and the economy.
The participants of the meeting resolved that the Government of Pakistan remains committed to ensuring maximum relief for the public by implementing effective strategies in the food security sector.
As per official data of 2023-24 crushing season, Pakistan produced a total of 6.843 million tons of sugar, of which, 4.37 million tons was produced in Punjab, 2.022 million tons in Sindh and 447,000 tons in Khyber Pakhtunkhwa (KPK).
While the country had a total 823,000tons of carryover sugar stocks during the season, of which, 517,000 tons with Punjab mills, 191,000 tons with Sindh’s mills and 115,000 stocks by KPK mills, thus, having a total quantity of 7.664 million tons.
The sugar industry has escalated local sugar prices by Rs46 per kg within the past four months despite the strict instructions issued by the Federal Minister for Industries and Production on November 21,2024 to maintain local sugar prices stabilise but since than the industry gradually increased the prices.
According to PSMA officials, last year sugarcane price was fixed at Rs350 per 40kg which in 2023-24 reached Rs450 per 40kg and the production cost of sugar at present stands at Rs170 per kg while in the retail market, refined sugar was available in the range of Rs160 per kg.
Pakistan’s industrial use of sugar stands at 85percent and the rest 15 percent was domestic use. Moreover, 18 percent general sales tax (GST) was imposed on sugar and if the government withdraws GST from sugar it can benefit the domestic consumers, the PSMA officials argued.
Copyright Business Recorder, 2025
