Sweetener's import raises eyebrows

The import of sugar and then its export to dispose of unsold stocks, which is happening now, have raised serious questions about data maintenance relating to the commodity's availability, stocks and domestic consumption. This has also sparked questions about the role of the Sugar Advisory Board and the food ministry, which deal with sugar inventories in the country.

The government had imported sugar over fears of low supply in the domestic market but later it came to know that the imported sugar could not be consumed.

Out of the total import of 500,000 tonnes, the Trading Corporation of Pakistan (TCP) imported 300,000 tonnes while the consumption reached only around 200,000 tonnes. Now, the government has allowed sugar export to avoid losses, which may be caused by the imported sweetener's stocks in the country.

Cabinet members were informed in a recent meeting that the government had imported sugar in 2025, but it could not be consumed and "now it is going to export the commodity to dispose of those stocks".

Sources in the Ministry of Commerce told The Express Tribune that Prime Minister Shehbaz Sharif took the cabinet members into confidence during the meeting over the sugar export decision. The PM alluded to the fallacious information being spread by certain elements through the media about sugar export.

The premier observed that the initiative was being taken in a very transparent manner to avoid losses that would accrue if the imported sugar was not sold before the approaching expiry of its shelf life.

He advised the deputy prime minister/minister of foreign affairs to apprise the cabinet of the factual situation. The deputy PM shared with the forum that owing to various factors, including heat waves and crop diseases, sugarcane production had suffered a decline of 15% during the 2024-25 crushing season.

Because of the low production and other supply-side constraints, he said, sugar prices rose significantly in the domestic market. To stabilise prices for the benefit of consumers, the cabinet, on the recommendation of the Economic Coordination Committee (ECC), allowed import of up to 500,000 metric tons of white crystalline sugar in June 2025. However, only 300,000 tons were imported.

He further informed the cabinet that around 192,000 tons of the imported sugar was sold domestically while around 108,000 tons were lying with the TCP, which required urgent disposal in view of its fast approaching shelf life.

The deputy PM pointed out that since sugar prices had recently risen considerably in the international market, the export of the imported sweetener would be beneficial to the country, which would help in recovering both its landed and carrying costs.

The PM emphasised that it must be clear to all that the government had allowed sugar import solely with the objective of ensuring its adequate availability in the domestic market and enabling people to purchase the essential commodity at affordable prices. He noted that timely imports during the previous year helped in arresting the upward trend in domestic prices, adding that it was extremely regrettable that certain elements were distorting facts for their ulterior motives.

It was also highlighted that farmers had been struggling to get inputs at lower rates and were forced to pay higher prices for fertiliser and fuels. Now, they are facing the worst situation due to the rising cost of high-speed diesel.

They have also been facing delayed payments by sugar mills, which are largely owned by the elite class. Even brokers have made money through import and then export of sugar.