Govt, sugar mills agree on Rs165/kg ex-mill price
Federal Minister for National Food Security & Research, Rana Tanveer Hussain, chaired a high-level meeting today with the Pakistan Sugar Mills Association (PSMA) to address the implementation of the government-notified ex-mill price of sugar and ensure its smooth availability in the market. According to an official statement released on Tuesday, the meeting was attended by the chairman and senior members of PSMA, along with senior officials of the ministry.
During the meeting, detailed deliberations were held on the enforcement of the ex-mill sugar price and steps needed to ensure immediate and uninterrupted supply of sugar across the country. As per the statement, the association appreciated the government's decision and assured its full cooperation in stabilising prices.
The PSMA agreed to supply sugar at the ex-mill price of Rs165 per kg. It was mutually agreed that the impact of the price reduction would start reflecting in the retail market within the next two to three days.
Speaking on the occasion, Federal Minister Rana Tanveer Hussain stated, "The government is fully committed to providing relief to the public. All possible measures are being taken to ensure the availability of sugar at affordable prices." He further emphasised that strict implementation of the retail price will be ensured and hoarding or profiteering will not be tolerated.
The minister highlighted that an effective mechanism has been devised to curb artificial price hikes and ensure consistent supply. He reiterated that public interest remains the top priority of the government and that the ministry will continue to work in close coordination with the sugar industry to maintain price stability, reads the statement.
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Express Tribune
13 hours ago
- Express Tribune
Govt signs fresh sugar export deal
Listen to article The finance ministry on Wednesday finally admitted that the International Monetary Fund (IMF) objected to Pakistan's tax exemptions on sugar imports. Despite this, the government has entered into yet another agreement with the Pakistan Sugar Mills Association (PSMA), allowing future sugar exports if total stocks exceed seven million metric tonnes. The new agreement, signed on July 14 between the minister for national food security and research and the all-powerful PSMA, aims to persuade millers to keep ex-factory sugar prices between Rs165 and Rs171 per kilogram until October 15. It signals that the government has not learnt from its earlier decision to allow the export of 765,000 metric tonnes, which triggered the current price crisis. Prime Minister Shehbaz Sharif's government had permitted the export of 765,000 metric tonnes, driving local prices up to Rs200 per kg. In order to stabilise prices, the government allowed tax-free imports of sugar, prompting sharp criticism from the IMF. "The government is discussing the sugar issue with the IMF," said Secretary Finance Imdadullah Bosal at a National Assembly Standing Committee on Finance meeting held Wednesday. PPP's Syed Naveed Qamar chaired the committee also said that the IMF was displeased with the government's decision to waive taxes on the import of sugar. "There are about 70 benchmarks in the IMF programme, and one of those is that tax exemptions cannot be given," Bosal explained, responding to a question on the nature of the IMF objections. Sources said that the IMF has plainly asked the government to revoke three statutory regulatory orders issued to waive taxes. The Express Tribune reported on Tuesday that the IMF had reacted to the major breach of the $7 billion programme and conveyed its reservations about import of sugar by waiving taxes in violation of written commitments. Federal Board of Revenue (FBR) Chairman Rashid Langrial justified the tax waiver by pointing out that total import duties on sugar amounted to 53%, making imports unaffordable. The waiver aimed to cut the import price of sugar by Rs82 per kg. Initially, the Trading Corporation of Pakistan (TCP) issued a tender to import 300,000 metric tonnes. After IMF's objections, the volume was reduced to 50,000 tonnes, and the bid deadline was extended from July 18 to July 22. MNA Jawed Hanif criticised the double standard, saying the government used the IMF as an excuse during budget debates but later breached the agreement itself. Bosal denied speculation that the IMF would demand new taxes on salaried individuals in exchange for sugar import waivers. PPP's Nafisa Shah remarked, "Vested interests are stronger than the IMF." The sugar export agreement states that "the federal government will allow, for export of sugar stocks exceeding seven million metric tonnes (carryover plus 2025-26 production), after 30 days of the closing of the crushing season 2025-26." This definition means even imported sugar, if not consumed, could count toward total stock. The stock verification will rely on FBR's track and trace system and be overseen by a four-member committee, one official each from the federal and provincial governments and two from PSMA. Critically, the agreement includes a price-fixing clause that contradicts Competition Commission of Pakistan (CCP) laws. It states, "The maximum ex-mill price of sugar will be fixed at Rs165 per kg on July 15, 2025, and increased by Rs2 per kg monthly until October 15, 2025." Before last year's sugar exports, ex-mill prices were below Rs140 per kg. By setting the maximum price at Rs171 per kg, excluding retail profit margins, the government is effectively granting a windfall to millers. Qamar said the government should exit the sugar trade entirely, including ending the licensing regime for new sugar mills. "There are sufficient stocks in the country," Qamar added. "Importing sugar sends the wrong signals to the market." He further said the government should only regulate wheat, not sugar. "Sugar remains a highly regulated commodity, while wheat has been deregulated," he said. Other matters The committee also reviewed two key private member bills: the Corporate Social Responsibility (CSR) Bill, moved by Nafisa Shah, and the Parliamentary Budget Oversight Bill, proposed by MNA Rana Iradat Sharif Khan. The CSR bill proposes that companies contribute 1% of net income toward social welfare. However, the secretary finance opposed the bill, claiming it would raise the cost of doing business. Committee members rejected this argument, noting the levy targets net income, not sales. Nafisa Shah argued that many companies already allocate around 1.5% to CSR voluntarily and support the bill. Despite this, the finance ministry requested a one-month consultation period with stakeholders, which the committee said was unnecessary. Qamar also formed a sub-committee to further evaluate the Parliamentary Budget Oversight Bill, aimed at enhancing budgetary accountability. While Secretary Bosal expressed reservations against the bill, Qamar stressed that while the oversight bill may challenge the bureaucracy's fiefdoms, the proposed legislation is important for the improvement of the overall system.
Express Tribune
2 days ago
- Express Tribune
Govt, sugar mills agree on Rs165/kg ex-mill price
Listen to article Federal Minister for National Food Security & Research, Rana Tanveer Hussain, chaired a high-level meeting today with the Pakistan Sugar Mills Association (PSMA) to address the implementation of the government-notified ex-mill price of sugar and ensure its smooth availability in the market. According to an official statement released on Tuesday, the meeting was attended by the chairman and senior members of PSMA, along with senior officials of the ministry. During the meeting, detailed deliberations were held on the enforcement of the ex-mill sugar price and steps needed to ensure immediate and uninterrupted supply of sugar across the country. As per the statement, the association appreciated the government's decision and assured its full cooperation in stabilising prices. The PSMA agreed to supply sugar at the ex-mill price of Rs165 per kg. It was mutually agreed that the impact of the price reduction would start reflecting in the retail market within the next two to three days. Speaking on the occasion, Federal Minister Rana Tanveer Hussain stated, "The government is fully committed to providing relief to the public. All possible measures are being taken to ensure the availability of sugar at affordable prices." He further emphasised that strict implementation of the retail price will be ensured and hoarding or profiteering will not be tolerated. The minister highlighted that an effective mechanism has been devised to curb artificial price hikes and ensure consistent supply. He reiterated that public interest remains the top priority of the government and that the ministry will continue to work in close coordination with the sugar industry to maintain price stability, reads the statement.
Express Tribune
2 days ago
- Express Tribune
Deal falls flat as sugar prices stay high
The sugar industry might have cut a deal with the government to sell the sweetener to the wholesalers at Rs165 per kg. However, the effect of this deal has not yet reached people, who are still compelled to buy the commodity at prices ranging from Rs180 to Rs210 per kg. Sugar, mostly extracted in Pakistan from sugarcane, has seen a steady increase in prices in the last 7 monthsfrom Rs140 per kg to Rs200 per kg. According to Wholesale Grocers Association Chairman Rauf Ibrahim, mills had stopped supply of sugar on Friday, causing a further hike in prices. The Ministry of National Food Security and Research and sugar mills reached an agreement on Monday, setting the ex-mill price of sugar at Rs165 per kg. "The mills resumed supply of sugar on Tuesday but they are not providing the produce at the agreed price and have set the ex-mill price at Rs175 per kg." He said under the Rs165 ex-mill formula, the wholesale price should be Rs168 and the retail price between Rs172 and Rs175. However, sugar is not available in the wholesale market even at Rs185. Retail Grocers Association Chairman Fareed Qureshi said the retail price of sugar in Karachi was Rs200 per kg on Tuesday. In Lahore, sugar is being sold at the discretion of shopkeepers rather than at government-fixed rates. The official retail price of sugar is Rs180 per kg, but it is being sold for between Rs185 and Rs210. Lahore Deputy Commissioner Syed Musa Raza has directed assistant commissioners and price control magistrates to take action against those selling sugar at inflated rates. However, such actions have proven ineffective. Meanwhile, a high-level meeting on sugar prices was held under the chairmanship of Federal Minister for National Food Security Rana Tanveer Hussain. The meeting was attended by the chairman and senior members of the Pakistan Sugar Mills Association (PSMA) as well as senior officials of the ministry, according to a statement. Important decisions were made to stabilize sugar prices and provide immediate relief to the public. The association agreed to supply sugar at an ex-mill price of Rs165 per kg. The association appreciated the government's efforts and assured full cooperation in stabilizing prices. Officials stated that the impact of price reduction would be seen in the market within the next two to three days. On the occasion, Hussain said that the government is taking all possible steps to provide relief to the people. He made it clear that enforcement of the fixed retail price would be ensured and that hoarding or profiteering would not be tolerated under any circumstances. "A comprehensive strategy has been prepared to ensure uninterrupted supply of sugar, and that the ministry remains in constant contact with the sugar industry to safeguard public interest at all costs," the minister said. Interestingly, the Trading Corporation of Pakistan (TCP) has issued a revised tender stating that, for now, only 50,000 metric tons of sugar will be imported. Bids have been invited until July 22 under this revised tender. Earlier, a tender for 300,000 metric tons was issued with a bid deadline of July 18.
