Lahore: Today, the federal government holds an important meeting to assess the execution of its sugar pricing pact with the Pakistan Sugar Mills Association (PSMA), as open market sugar prices keep rising—hitting Rs190 per kg.
The meeting will chair by Federal Minister for Food Security Rana Tanveer Hussain, unites essential participants such as the Secretary of Industries, Chairman of FBR, Chairman of PSMA, DG of FIA, and provincial cane commissioners.
The examination follows reports indicating that the established ex-mill price of Rs165 per kg, agreed upon in the July 14 arrangement, is not being upheld in the majority of wholesale markets, particularly in Punjab. The Punjab Agriculture Economic Department reports that the price agreement is being violated in almost a dozen key markets.
Sugar distributors allege that mill operators are providing less sugar than needed and inaccurately portraying prior inventory as fresh sales at the controlled rate. Vendors assert that manufacturers are providing invoices at Rs165 per kg for stock that has already been acquired, resulting in a deceptive compliance record.
Compounding the issue, sugar mills are said to be engaging solely with Sales Tax Registered (STRN) dealers—an allegation that dealers claim is intended to bypass supply at the regulated price. Market sources indicate that a large share (80-90%) of the sugar trade typically happens without STRN documentation, frequently involving non-commercial purchasers.
PSMA Chairman Zaka Ashraf responded by saying that the FBR, Intelligence Bureau, and district authorities are closely monitoring sugar mill operations. He highlighted the necessity of deregulating the sugar industry to guarantee the sustainability of mills.
