A special meeting of the Sugar Advisory Board was held under the co-chairmanship of Deputy Prime Minister Ishaq Dar and Federal Minister for National Food Security Rana Tanveer Hussain to review the sugar market situation, imported sugar stocks, and the closure of the S-Track portal. The deputy prime minister attended via Zoom, while the federal minister joined from the Lahore office of the Pakistan Sugar Mills Association (PSMA).
According to a statement issued by the PSMA, the sugar industry made it clear that the government’s policy of prioritising the sale of imported sugar and closing the Federal Board of Revenue (FBR) portals for local sugar sales has triggered the recent price surge and supply shortage in the market.
Industry representatives said that for the past three weeks, mills across the country have been unable to supply sugar due to the closure of these portals, creating severe cash flow problems and repayment issues on bank loans.
They informed the meeting that the industry had repeatedly warned the government against importing unnecessary sugar but about 300,000 tonnes was still imported. Now, the government is struggling to offload imported sugar, and as a result, the sales portals for local sugar have been blocked.
The industry also told the minister that the PSMA had been cautioning authorities for weeks through letters and press releases that keeping the portals closed would lead to shortages and price hikes. However, these warnings were ignored. Representatives emphasised that the domestic sugar industry was not responsible for the price increase and that dealers and profiteers were the main beneficiaries.
They said the government’s decision to prioritise imported sugar had sidelined the domestic industry and disrupted the supply of better-quality local sugar. As a result, sugar had become both costlier and scarce in several areas of the country.
During the meeting, officials discussed various options for the purchase and distribution of imported sugar by local mills. The federal minister listened to the industry’s concerns and assured that immediate steps would be taken to resolve the issues related to portal closures and ensure smooth supply of sugar to the market.
Last week, the National Assembly Standing Committee on Commerce called for strict accountability over controversial sugar export decisions. Chairman Muhammad Jawed Hanif Khan said repeated policy lapses demanded a detailed inquiry into those responsible. The committee formed a Sub-Committee to investigate the issue and directed the Competition Commission of Pakistan to explain its failure to curb cartelisation. It also recommended deregulation of the sugar sector and restructuring of the Sugar Advisory Board to enhance transparency.
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