The Pakistan Sugar Mills Association (PSMA) has raised concern over the Federal Board of Revenue’s (FBR) decision to suspend sugar sales through its online portal nationwide, calling it inconsistent with ongoing sugar imports, reports Borneo Bulletin.
A PSMA spokesperson warned that the move could create a serious market crisis, leading to shortages and higher prices. The group urged the government to allow mills to freely sell sugar in the market.
According to the Sensitive Price Index (SPI) data, the national average price of sugar has remained between PKR177 and PKR195 per kilogram this month. In July and August, however, consumers paid as much as PKR200 per kg.
The spokesperson clarified that all mills are currently selling sugar at PKR165 per kg ex-mill, and that stocks are sufficient to last until mid-November. Retail prices in Punjab are reported between PKR175 and PKR177 per kg. He added that while mills set ex-mill prices, retail rates are driven by market conditions.
On sugar imports, the spokesperson said the decision rests with the government, though the industry can provide input. The government recently announced plans to import 500,000 tonnes of sugar, with the Trading Corporation of Pakistan (TCP) already inviting tenders for 100,000 tonnes.
Market traders have questioned the government’s changing stance, first allowing exports and then reversing course to permit imports. In FY25, sugar exports reached 765,734 tonnes worth USD411 million, compared to just 33,101 tonnes worth USD21 million in FY24. Exports were halted in July-August FY26, according to the local media reports.
The PSMA spokesperson maintained that exports did not affect domestic prices, as they were based on surplus stocks from previous years and additional production in the 2023-24 season. Despite this surplus, mills were forced to sell sugar below production cost, leading to financial strain.
