The recent permission to export 150,000 tonnes of sugar has led to a noticeable increase in local prices, with the retail price of sugar rising from Rs145.15 to Rs147.71 per kilogramme.
This surge in prices, amounting to an increase of Rs2.56 per kg, has prompted the Ministry of Industry and Production to take swift action.
The Ministry of Industry and Production has taken notice of the price hike of Rs2.56 per kg and has sought clarification from the Pakistan Sugar Mills Association (PSMA) regarding the sudden increase in sugar prices. In response to the rising costs, the ministry is considering suspending the export quota granted to the sugar mills.
To address the issue, a meeting has been scheduled with the committee responsible for monitoring sugar exports and the Sugar Advisory Board. The meeting, set for tomorrow, aims to evaluate the situation and formulate a strategy to control the price increase.
In addition to the price concerns, the Pakistan Sugar Mills Association has been criticized for failing to settle arrears owed to farmers. The association has also requested permission to export an additional 8.5 million tonnes of sugar, further complicating the situation.
On July 20, the Utility Stores Corporation (USC) dismissed concerns about a potential sugar shortage in the country, attributing the temporary halt in sales to the recent imposition of an additional tax on sugar in the new budget.
A spokesperson said that there were rumours of sugar unavailability or impending crisis in the country, but clarified that the corporation had an ample supply of sugar. He explained that the suspension of sales is due to the excise duty increase of Rs15 per kilogramme introduced in the new budget.
