Ministry Fixes Ex-Mill Sugar Price at Rs165 per Kg

On July 14, 2025, Pakistan’s Ministry of National Food Security and Research (MNFSR) set the ex-mill sugar price at Rs165 per kilogram, aiming to curb soaring retail costs. This article delves into the decision, its challenges, and the broader economic implications amid accusations of market manipulation.

The MNFSR announced the new ex-mill price after negotiations with sugar mill owners, a move intended to ease the burden on consumers facing retail prices as high as Rs200 per kg in cities like Karachi and Peshawar. “All provincial governments are directed to ensure sugar is available at this rate,” the ministry stated, emphasizing enforcement to stabilize markets. The decision follows a July 8 cabinet approval to import 500,000 metric tonnes of sugar to address shortages, with the Trading Corporation of Pakistan (TCP) issuing tenders by July 18. However, retail prices remain stubbornly high, raising doubts about the policy’s immediate impact.

Critics, including Fawad Hassan Fawad of the Pakistan Muslim League-Nawaz (PML-N), question the import strategy, arguing it benefits foreign suppliers over local farmers. “Who gains from this?” Fawad asked on X, highlighting policy inconsistencies. The Pakistan Sugar Mills Association (PSMA) claims domestic stocks are sufficient until November, opposing imports. Conservatives see this as a symptom of weak regulation, with a Ministry of Industry official noting, “There’s no coherent national policy,” allowing speculative hoarding by mill owners and brokers. Such practices, often linked to a so-called “sugar mafia,” drive artificial shortages, undermining consumer relief efforts.

The government’s temporary removal of import taxes has yet to lower prices, with imported sugar landing at Rs155–160 per kg at Karachi ports. Provincial inaction and speculative trading further complicate enforcement, as noted by @AdeelAfzal06 on X, who stressed the need for crackdowns on hoarding. With festive demand looming, the Rs165 per kg cap faces a tough test. Conservatives argue for stronger market oversight and local production support to prevent profiteering and ensure affordability, reflecting a broader call for economic policies that prioritize citizens over entrenched elites.