Deputy PM Dar vows to regulate sugar prices, monitor supply: report
Deputy Prime Minister Ishaq Dar on Friday said that the government was committed to regulating sugar prices and monitoring its supply to ensure market stability, state-owned Radio Pakistan reported.
Contrary to the rates announced by the prime minister as well as several attempts by the government to maintain retail sales at Rs130 per kilogramme, sugar prices in the markets continue to soar above Rs180 per kg in various markets across the country.
Previously, the deputy prime minister had cautioned that retail sugar prices should not exceed Rs164.
However, despite Dar’s warning, consumers continued to pay high prices for sugar — with the average national price of sugar in various cities hovering between Rs164-180 per kg.
While chairing a meeting in Islamabad, he expressed his resolve on the prevailing sugar crisis in the country, according to the report.
During the meeting, he reviewed compliance with the committee’s agreement reached earlier, expressing his “satisfaction with the downward trend in prices of sugar”, according to Radio Pak.
Dar directed the Pakistan Sugar Mills Association (PSMA) to ensure full compliance with the agreement for retail prices of sugar at or below Rs164 per kg throughout the country.
Sugar consumption is forecast to increase slightly to 6.7 million tonnes as it has continuously grown due to the population growth and demand from the food processing sector.
During the last season, Pakistan produced more than 6.84m tonnes of sugar, which is expected to rise in 2024-25.
Given this alleged massive siphoning from the consumers, the Competition Commission of Pakistan (CCP) had stated that it was closely monitoring the ongoing sugar crisis and warned that strict enforcement and policy actions will be taken if any anti-competitive activities are found.
The CCP has been working to curb cartelisation in the sugar industry, promoting fair competition and protecting consumers.
The CCP inquiry launched in 2020 revealed that sugar mills were prima facie engaged in price-fixing and controlling supply through coordinated actions facilitated by the PSMA.
As part of the investigation, the CCP also conducted raids and imposed Rs44 billion in penalties on sugar mills and the PSMA in August 2021, one of the highest fines in its history.