Govt sets sugar ex-mill price at Rs165 per Kg

July 15, 2025 (MLN): The ex-mill price of sugar has been set at Rs165 per kilogramme by the Ministry of National Food Security and Research, reflecting a Rs25 increase from the rate fixed last June.

The price hike comes after an agreement between the government and the sugar industry, as confirmed in an official statement issued.

Provincial governments have been directed to ensure the availability of sugar to the public at the new rate, according to the press release issued.

The directive follows a significant spike in retail prices, which have soared to Rs200 per kg in various cities, including Karachi and Peshawar, despite the newly fixed ex-mill rate.

To stabilize prices and ensure consistent supply, the federal government last week approved the import of 500,000 metric tonnes of sugar.

A statement posted on X noted that this move aims to maintain affordability and market stability across the country.

Back in March, Deputy Prime Minister Ishaq Dar addressed price hikes, stating retail sugar prices should not exceed Rs164.

This came after the Competition Commission of Pakistan (CCP) warned sugar mills against manipulating market rates.

Reports at the time indicated that prices had reached Rs178–179 per kg, prompting strong reactions from government leadership.

Despite the new price controls and import plans, the gap between the ex-mill rate and retail market prices remains wide, reflecting ongoing supply chain challenges.

The Ministry of National Food Security acknowledged these pressures and emphasized that the import strategy represents a corrective approach, contrasting it with past policies that were criticized for enabling artificial shortages.

According to the ministry, implementation of the import plan is already in progress.

It clarified that the earlier decision to allow sugar exports was based on then-adequate domestic reserves, but changing circumstances and rising prices have necessitated a policy shift.

However, the move has not gone unchallenged. The Pakistan Sugar Mills Association (PSMA) opposed the import, claiming local stocks are sufficient to meet demand until November.

Political figures have also weighed in, with PML-N leader Fawad Hassan Fawad questioning the timing of the decision and suggesting it may benefit select groups, highlighting concerns over inconsistency in economic policymaking.

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