The Pakistan Sugar Mills Association (PSMA), in response to a sharp hike in sugar prices around the nation, has disputed allegations of a shortage, claiming that the price increase is merely a “routine off-season rise.”
Since sugar is now being offered in the retail market for between Rs170 and Rs180, the wholesale price has dramatically increased.
The News reported on Friday that the PSMA issued a warning about a shortfall next year due to poor acreage and criticised over-regulation, dispelling the notion that there is a lack of sugar in the present season,
According to a millers’ association representative, the PSMA emphasised that the price increase for sugar had nothing to do with the “shortage as a result of the previous government’s permission to allow its export.”
According to an unbiased study of the data, Pakistan had a surplus of roughly one million tonnes of sugar at the end of the most recent sugar season in 2021–2022. Due to this enormous surplus, the government permitted the export of 250,000 tonnes of sugar, with the potential for an additional 250,000 tonnes in the future.
Additionally, it was predicted that production would be strong during the 2022–2023 sugar season. However, the government discovered that the crop’s output was less than expected during the harvest. As a result, the plan to permit future export of the goods was shelved, according to the spokeswoman.
The PSMA official said Pakistan had stocks of 8.15 million tonnes at the beginning of the sugar season 2022–23, including carryover stocks from last year, which was a satisfactory stock position for the entire year with some surplus.
Our monthly consumption is still 0.65 million tonnes, according to the Federal Board of Revenue and other related government agencies. The usage for the nine months from November 2022 to July 2023 was 5.85 million tonnes. the remaining three months,
The spokeswoman said, “The perception of a sugar scarcity at this time is not comprehended.
According to the PSM statement, the price of sugar is extremely erratic on the international market and can range up to Rs250/kg. This causes significant leakage from Pakistan’s borders.
Due to its great quality and low local costs, Pakistani sugar is particularly well-liked, which encourages smuggling via the Western borders.
Unpredictable dollar exchange rates, escalating POL costs, excessively high bank interest rates, pay increases, continuously rising market prices for all other commodities, and exploding energy rates are additional significant factors contributing to the growth in sugar prices.
Under these challenging economic conditions, sugar is hardly an exception.
In the future, the heavily regulated sugar industry needs to be deregulated and work with market forces like rice, maize, and other crops, according to the PSMA spokeswoman, in order to be competitive globally.
The commercial sector consumes 70% of all of our sugar, which is another fact that is not widely known. Only 30% of domestic consumers eat sugar, and among that group, 15% are considered to be low income, the representative stated.
Only the poorest members of society are of concern to the government, and for them, programmes like Utility Stores that provide subsidies already exist.
The spokeswoman mentioned deregulation, calling it a barrier to the development of the sugar business, and added that the courts also opposed excessive regulation.
The government will need to spend billions of dollars to make up for the shortage of domestic sugar output, he concluded, if this over-regulation continues.
