Govt completes the decision to import sugar as prices rise

• The sugar price increases Rs6/kg on the Lahore market.
• The quetta rate is increased by Rs5 per kilogram.
• Govt accuses traders of promising prices.

Islamabad: The Federal Council of Ministers has given final approval for the introduction of 500,000 tonnes of sugar through the public sector, the Ministry of National Food Safety said Tuesday.

In a statement, the ministry noted that all the arrangements for the import process were completed and immediate implementation was ongoing, adding that the decision aimed at stabilizing domestic sugar prices amid growing concerns about market volatility.

He added that the latest introduction plan reflects a more effective and improved strategy compared to previous practices. “Unlike previous years, when artificial shortcomings were created to justify subsidies, this import initiative is guided by the need for genuine market correction,” the ministry added.

He also said that the previous decision allowed to sugar exports was taken when the domestic supplies were abundant. “Now, in the light of price increases, sugar import is essential to restore market balance,” the ministry concluded.

Meanwhile, market prices continue to grow. In December 2024, the former Sugar’s percentage was RS125-130 per kilogram. It is now in RS190-200 per kilogram in retail markets.

In the latest increase, prices in Lahore increased by RS6 per kilo, reaching the RS190, while in Quetta, prices rose by RS5 to match the same level. The karachi has recorded the highest percentage so far, with the sale of sugar up to Rs200 per kilogram.

Traders had previously assured the government that prices would remain stable after the export license. They also claimed that sugar would not need to be inserted in 2025.

Last month, the Sugar Advisory Council – led by Federal Minister of National Food Safety Rana Tanveer Hussain – approved the introduction of 500,000 tonnes of sugar, a few months after 750,000 tonnes in exports from June 2024 to January 20.

Minister Rana Tanveer Hussain said: “The supply chain disorder and non -compliance by the mill owners have created instability and contributed to price increases.

However, the time of admission approval has asked questions. Consumer analysts and supporters argue that the government’s short-sighted policy-which first allows exports despite offering restrictions-now forced it to reverse the course at the cost of public capital and consumer confidence.