The Competition Commission of Pakistan (CCP) has disclosed that misleading data from the Sugar Advisory Board led to a sugar export decision that cost the public heavily.
In a meeting chaired by Federal Minister for Finance Muhammad Aurangzeb, the CCP chairman revealed that from June to October 2024, 750,000 metric tons of sugar were exported based on incorrect figures provided by the Pakistan Sugar Mills Association (PSMA).
The inaccurate data on sugarcane production, available stock, and sugar output estimates resulted in a shortage in the local market. The exports generated $403 million, equivalent to Rs 112 billion, but contributed to a crisis that added an estimated Rs 300 billion burden on the public.
Minister Aurangzeb announced that the sugar sector will be fully deregulated, enhancing the role of the CCP. He also directed that other institutions ensure the provision of relevant data to assist in investigations.
Potential sugar price hike before crushing season
Officials from the Ministry of Industries and Production have warned of a possible increase in sugar prices before the start of the crushing season. Speaking at a subcommittee meeting of the National Assembly’s Standing Committee on Commerce, they said that an artificial shortage could be created in the market before November 15.
They informed the committee that the current stock of 1.7 million tons is sufficient until November 15, and there appears to be no need to import sugar until November 2025. However, market forces, including wholesalers, could manipulate supply to raise prices.
The officials said that last fiscal year, sugar exports worth $420 million (Rs 112 billion) took place, and before exports, retail sugar prices ranged between Rs 125 and Rs 130 per kg. Committee convener Atif Khan questioned why the price later soared to Rs 200 per kg. Officials stated that it had been agreed with sugar mills that prices would not exceed Rs 140 per kg, to which the convener remarked that this indicated prices rose after exports.
They added that prices increased in the market after sugar exports were halted, and the current average price stands at Rs 179 per kg.
