PSMA blames dealers, confirms stable Sugar supply

August 01, 2025 (MLN): The Pakistan Sugar Mills Association (PSMA) has assured that all sugar mills across the country are supplying sugar at Rs165 per kg ex-mill, and the country has sufficient sugar stocks to meet domestic demand till mid-November 2025.

In an official statement, a spokesperson of PSMA explained that earlier disruptions in the sugar supply chain were caused by conflicting administrative actions by various government bodies, which have now largely been resolved.

The association reiterated that mills are supplying sugar to the domestic market at the officially stated ex-mill price of Rs165 per kg.

However, PSMA emphasized that mills have no role in determining the retail price of sugar, which is influenced by market dynamics and now overseen by government regulation.

According to PSMA, despite media reports of sugar selling at Rs200 per kg, the actual market price ranges between Rs173 to Rs175 per kg, in line with official guidelines.

Dealers, satta mafia accused of disrupting supply

The association accused certain sugar dealers of purchasing sugar at the fixed ex-mill rate and diverting it toward industrial and commercial consumers, instead of domestic buyers, to earn higher margins.

"Stockists and the Satta Mafia are creating artificial hurdles in the supply chain, exploiting the difference between procurement and resale prices," the spokesperson stated, adding that these elements are blaming sugar exports for the current shortage to mask their profiteering tactics.

Exports not responsible for shortage

Refuting allegations linking sugar exports to local supply shortages, PSMA clarified that exports were only permitted in the case of surplus stocks—both from the carryover of the past two years and the crushing season of 2023-24.

"Mills sold sugar at a loss below the cost of production, in compliance with the government’s fixed price of Rs140 per kg for exports,” the statement added.

While the PSMA attempts to distance the sugar industry from rising retail prices, the issue raises questions about the role of supply chain intermediaries, enforcement of price caps, and the transparency of domestic commodity flows.

With domestic consumption pressures set to rise in the coming months, the government may be expected to take stricter action against hoarding, speculation, and non-transparent distribution practices.

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