Govt rejects sugar crisis fears, 6.3m tons in stock

August 1, 2025 (MLN): Pakistan currently has 6.3 million metric tons of sugar in stock sufficient to meet annual domestic demand while prices have declined from Rs138 to Rs119 per kg, with the panic fueled by artificial market disruption rather than any real supply issue.

Federal Minister for National Food Security and Research Rana Tanveer Hussain stated that there is “no real shortage” in the country and called the current market concern a perception-driven crisis.

Pakistan produced 5.8m metric tons of sugar by the end of April 2025 and has an additional buffer stock of 500,000 metric tons, keeping the total supply aligned with the national consumption requirement.

The Minister emphasized that the government exported 750,000 metric tons of surplus sugar after verifying data with the Federal Board of Revenue (FBR) and other relevant departments, earning $402m in the process.

He said the decision was carefully planned and did not disrupt the domestic market.

Hussain added that although the government has approved the import of up to 500,000 metric tons, only 300,000 metric tons worth no more than $150m will actually be imported to preempt hoarding and stabilize the market.

He also highlighted record-breaking payments to sugarcane farmers this year, with growers receiving between Rs450 and Rs740 per 40 kg marking the highest rates in Pakistan’s history under the government’s pro-farmer policies.

Beyond agriculture, the Minister pointed to broader economic recovery, including a jump in foreign exchange reserves from $2–3 billion to nearly $20bn, a drop in inflation, and a sharp reduction in the policy rate from 22% to 11%.

He called the recent U.S. trade deal a landmark achievement and signaled plans to deregulate the sugar sector to break cartel dominance and attract private investment.

Lately, the Pakistan Sugar Mills Association (PSMA) also confirmed that all mills are supplying sugar at the fixed ex-mill rate of Rs165 per kg and that national stocks are sufficient to meet domestic demand until mid-November 2025.

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