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Food supply

Sugar Crisis in Pakistan: Government Claims Abundance Despite Rising Prices

Strategic Insights

— 2 min read

The government of Pakistan has come under scrutiny for its handling of the ongoing sugar crisis, with the food minister, Rana Tanveer Hussain, insisting that sugar is available in ample quantities and its price is within reach of the common man. Despite rising prices due to hoarding and profiteering, the minister dismissed claims of a severe sugar shortage, citing an increase in sugarcane cultivation and expected sugar production. However, the Pakistan Sugar Mills Association (PSMA) contradicts the government's claims, stating that all mills are supplying sugar at Rs165 per kg, and the country has ample stocks till mid-November.

Key Takeaways:

  • The government allowed the export of sugar in a phased manner, with export requests made when the global market price was $750 per ton, and the industry agreed to set the ex-mill price at Rs140 per kg.
  • The country produced 6.3 million metric tons of sugar, which is sufficient to meet domestic needs, with farmers receiving between Rs4,500 and Rs4,750 per ton for sugarcane.
  • The government has taken action against hoarders and dealers, but prices have continued to rise, with sugar being sold for Rs173 per kg.
  • The minister compared regional prices, stating that sugar was priced at Rs150 per kg in India, Rs187 in Bangladesh, Rs173 in Afghanistan, and Rs250 in Iran.
  • The government earned $450 million by exporting sugar at $500 per ton, and had export permission was granted for 7.5 million tons.
  • The country is currently importing 300,000 tons of sugar and will not purchase more than that.
  • A three-month agreement has been signed with mills, allowing a maximum increase of Rs2 per kg and setting the ex-mill price at Rs175 per kg.
  • Mills claim that sugar sale at mills is at Rs165 per kg, and the country has ample stocks till mid-November.

Statistics:

  • 6.3 million metric tons of sugar was produced in the country, sufficient to meet domestic needs.
  • Farmers received between Rs4,500 and Rs4,750 per ton for sugarcane.
  • Sugar is being sold for Rs173 per kg, compared to Rs150 per kg in India, Rs187 in Bangladesh, Rs173 in Afghanistan, and Rs250 in Iran.
  • The country is currently importing 300,000 tons of sugar.
  • The government earned $450 million by exporting sugar at $500 per ton.

Sources:

  • Minister for National Food Security and Research Rana Tanveer Hussain
  • Pakistan Sugar Mills Association (PSMA)
  • Global market price of sugar ($750 per ton)
  • Ex-mill price of sugar (Rs140 per kg)
  • Retail price of sugar (Rs173 per kg)

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