
In a decisive move to combat a spiralling sugar crisis, the federal government seized control of all sugar stocks nationwide, effectively taking over the supply chain from the private mills, officials of the Food Security Ministry said on Thursday.
The drastic measure includes the deployment of Federal Board of Revenue (FBR) officials to every sugar mill warehouse and placing 18 mill owners and other associated individuals on the ECL, whose names would made public in coming days, they added.
The ministry officials confirmed that a staggering 1.9 million metric tons of sugar was now under direct government supervision. "This decision was taken to pre-empt an artificial shortage of sugar and to curb further price hikes that are crippling household budgets," an official stated.
To ensure complete oversight, FBR agents have been stationed at all sugar mill warehouses to monitor the dispatch and supply of sugar. This is further reinforced by the implementation of a comprehensive track and trace system on all sugar stocks.
"The strategy mirrors a previous government action where FBR officials were deployed in ghee mills to supervise production, stock levels, and supply, according to the officials.
Meanwhile, the Pakistan Sugar Mills Association (PSMA) vehemently defended its members, placing the blame squarely on the "stock mafia and hoarders" for the current market turmoil.
The association claimed that far from profiteering, the industry has been haemorrhaging money for years, leading to the closure 12 mills, which are now up for sale.
"The accusations of profiteering against the sugar industry are unjust and contrary to the facts," a PSMA spokesperson said. "We have been consistently supplying sugar at an ex-mill price of Rs165 per kg. There are ample stocks in the country to last until mid-November 2025."
The association argues that the retail price, which has reportedly soared to as high as Rs200 per kg in some markets, is beyond their control. "Our responsibility ends at the mill gate," the spokesperson clarified. "The retail price is determined by market forces, which are now under government control."
The PSMA acknowledged that while some "administrative interventions" by the government had disrupted the supply chain, the industry is fully cooperating to resolve the issues. They allege that dealers, after purchasing sugar at Rs165 per kg, are diverting it to industrial and commercial consumers for higher profits, starving the domestic market.
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