Pakistan says nationwide crackdown against sugar hoarders, profiteers underway

Arab News

5 days ago

KARACHI: Pakistan's Food Security Minister Rana Tanveer Hussain announced on Wednesday that a nationwide crackdown against those attempting to disrupt the sugar supply in the country through hoarding and profiteering was underway, amid Islamabad's attempts to stabilize the commodity's price.
Market analysts have said retail sugar prices in several parts of the country have risen sharply since January, surging to Rs200 [$0.70] per kilogram. In Pakistan, high sugar prices have triggered public outcry and become flashpoints for opposition criticism in the past, with allegations of hoarding and cartelization frequently surfacing in election years or periods of economic volatility.
Hussain chaired a meeting with representatives of the Pakistan Sugar Mills Association (PSMA) and other key stakeholders from all provinces on Wednesday, the national food security ministry said in a press release. It said the meeting aimed to review the current sugar market situation, pricing trends, and supply chain dynamics.
'During the meeting, the Federal Minister expressed serious concern over the artificial hike in sugar prices and warned of strict action against all those who are involved in hoarding and market manipulation,' the statement said.
'He announced that a nationwide crackdown is currently underway against those disrupting the sugar supply chain.'
Hussain noted that due to the government's 'decisive actions,' sugar prices have started to decline significantly from Rs200 per kg to Rs. 175–180 [$0.61-0.63] per kg in various markets.
The minister warned sugar mills that were not releasing their existing stocks that the government would not tolerate hoarding, directing all provincial governments to ensure the timely lifting of sugar from mills and facilitate its smooth transportation to markets.
Hussain noted the 'exploitative role' of certain middlemen and market intermediaries, saying they were capitalizing on the market's volatility.
'The federal and provincial authorities are now actively pursuing legal and administrative actions against such elements to curb unjust profiteering,' the ministry said.
The minister later chaired a high-level meeting of the Steering Committee on Sugar Imports, where all technical, procedural, and operational challenges related to sugar importation were reviewed and resolved, the food security ministry said.
Earlier this month, Pakistan announced it would import sugar in two phases. In the first phase, a tender for 200,000 metric tons of sugar would be issued, followed by another tender for 150,000 metric tons after one week, the ministry said.
The ministry also announced it had decided to waive all duties and taxes on sugar imports to ensure the product is available at affordable prices.