Islamabad – July 14, 2025: In a bid to control rising sugar prices and curb hoarding, the federal government has officially fixed the ex-mill price of sugar at Rs165 per kilogram, according to a statement released by the Ministry of National Food Security & Research.
The decision follows recommendations by the Sugar Advisory Board (SAB) and aims to stabilize retail prices amid mounting concerns over artificial inflation, speculative trading, and supply chain manipulation.
Why the Price Cap Was Introduced
Officials stated that the fixed price reflects:
- Updated production costs as reported by provincial authorities
- Inclusion of operational margins for mills
- A mechanism to discourage profiteering by middlemen and wholesalers
“The move is intended to ensure fair pricing while maintaining sustainability for millers,” said a senior food ministry official.
Provincial Implementation and Retail Impact
The Rs165/kg price applies to all mills across Punjab, Sindh, and KP, and provincial governments have been directed to ensure strict enforcement.
- Retail sugar prices, which had recently soared beyond Rs190/kg in some markets, are expected to drop significantly
- Market inspections and crackdown operations will be intensified to penalize non-compliance
- A monitoring committee has been formed to oversee supply chain transparency
Industry Response and Challenges Ahead
While consumer rights groups welcomed the decision, some sugar millers have expressed concerns over:
- Higher input costs, especially fuel and labor
- Delayed payments from government procurement departments
- Fears of reduced crushing margins, potentially impacting future production
Economists argue that while price controls offer short-term relief, long-term sustainability depends on market reforms, transparency in inventory data, and addressing cartelization in the sugar sector.
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