Reduce sugar prices

PESHAWAR: The government has requested the sugar industry to supply sugar on fixed rates and the government supports the industry by fixing the price of sugar cane for higher cultivation by farmers and also stopping the import of higher quality but cheaper sugar from the international market.

But the sugar mills have failed to honour their commitment and instead have again increased sugar prices without warning, when the government was tackling high inflation.

The sugar industry regularly uses 8% sucrose content of the sugar cane in Pakistan, while PARC has calculated 12-14% sucrose content. The international standard, however, is 15-24%, which means that the Pakistan sugar industry can never compete with international players.

Therefore I think the government should reduce all support for the sugar industry by immediately, allowing duty-free import of sugar, ending the sugar cane fixed support price. The government should ask entities like PIA, Utility Stores, etc to purchase sugar from local mills at a fixed price set by the government to support them while also allowing import of sugar cane and seeds by sugar mills at zero tax.

These measures will immediately reduce sugar prices and ensure these prices stay low, while also push the sugar industry to become more competitive. Sugar is used in food, medicines, baked goods, ice creams and many other daily-use products, so reducing its cost will also help reduce the costs for such items too.

Engr Shahryar Khan Baseer

Published in The Express Tribune, January 25th, 2020.