Govt Puts Names of Sugar Hoarders on Exit Control List

Federal Minister for National Food Security Rana Tanveer Hussain on Thursday defended the government’s decision to import 500,000 metric tons of sugar, stating the move is essential to maintain market stability and will cost approximately $150 million. He also blamed stockists and hoarders for price manipulation and assured the public that strict action is being taken against cartels, including placing the names of those involved in sugar hoarding on the Exit Control List (ECL). “People will see the heat very soon,” he warned, hinting at a broader crackdown. Speaking at a press conference in Islamabad, the Food Minister said that sugar is available in sufficient quantities with prices under control. Pakistan has a buffer stock of 0.5 million metric tons, with a total reserve of 2 million metric tons, enough to meet domestic demand. He clarified that sugar has been exported and imported in previous years as well, and the current situation is being sensationalized in the media, much like a “seasonal frog that appears only during the rain.” He explained that earlier exports were approved based on a surplus stock, with $750 per ton being the global market rate at the time. Domestically, the ex-mill price was set at Rs. 140 per kg, with the expectation that retail prices would follow within an Rs. 8-10 range. However, he claimed that post-export, the price dropped to Rs. 119 per kg, contradicting claims that exports led to price hikes. Rana Tanveer pointed to climate change as a significant factor in reducing sugarcane yield despite an increase in cultivated area. He said that initial projections of 7 million metric tons fell short, with actual production at 6.3 million metric tons. This shortfall led the government to halt further exports, including 40,000 tons of sugar, to ensure domestic availability. He further revealed that 80 percent of sugar is consumed by commercial sectors like bakeries, beverage companies, and sweet manufacturers, while only 20 percent is used by households. This consumption pattern, he noted, should also be considered when discussing price impacts on the average citizen. At present, sugar is being sold at Rs. 172–173 per kg, with ex-mill rates at Rs. 165 per kg. The government has fixed sugar prices and signed three-month agreements with sugar mills to stabilize the market, allowing for a maximum increase of Rs. 2 per kg, keeping the ex-mill rate capped at Rs. 175 per kg until new production hits the market. The minister highlighted that Pakistan exported sugar at $500 per ton, earning $400 million in foreign exchange, although he claimed earnings could have been higher if exports had taken place at $750 per ton. Rana Tanveer added that the government will import 300,000 metric tons of sugar despite the fact that the cabinet allowed 0.5 million metric tons, spending approximately $150 million to maintain market stability. Rana Tanveer also gave a comparison of sugar prices in neighboring countries, as he claimed that sugar prices in India are Rs. 150/kg. Bangladesh Rs. 187/kg, Afghanistan Rs. 173/kg, Iran Rs. 250/kg, and Pakistan Rs. 173/kg. Rana Tanveer also referred to former finance minister Miftah Ismail, claiming that even he acknowledged Prime Minister Shehbaz Sharif’s reluctance to allow sugar exports last year due to potential shortages. He said that the next crushing season begins on November 15, and the government hopes the new harvest will normalize prices.