Sugar Mills Association Blamed for Price Hike and Shortage

A subcommittee of the National Assembly’s Standing Committee on Commerce has presented its report, holding the Pakistan Sugar Mills Association responsible for the country’s ongoing sugar crisis. The subcommittee, led by Convener Mirza Ikhtiar Baig, submitted its report to the National Assembly Standing Committee on Commerce, concluding that members of the sugar mills association were directly involved in market manipulation. The report recommends maintaining strategic sugar reserves of 540,000 tons at all times to prevent future shortages. To improve transparency, the committee has also recommended deregulating the sugar sector. The subcommittee found evidence of manipulation in sugar pricing and raised questions about the role of the Sugar Advisory Board. Convener Mirza Ikhtiar Baig noted that despite sugar imports, prices did not decrease as expected. The committee highlighted that the tax on sugar imports was slashed from 48% to just 0.5%, yet this did not translate into lower prices for consumers. It also recommended including private sector representatives in the Sugar Advisory Board. The main committee, chaired by Javed Hanif, has decided to conduct further investigations, including identifying individuals who benefited from exporting and then re-importing sugar. The committee also called for a report from the Competition Commission of Pakistan on the sugar crisis. The subcommittee will be reconstituted, with Mirza Ikhtiar Baig serving as convener and Muhammad Javed Hanif as chairman. The Secretary of Commerce supported the idea of maintaining a buffer stock of sugar in the country. Officials briefed the committee that the Prime Minister has already formed a committee to work on deregulating the sugar sector.