The federal government of Pakistan has decided to import raw sugar to help stabilize the rising prices of sugar in the country. This decision comes just a few weeks after the government allowed the export of half a million tonnes of sugar.
According to an official statement, importing raw sugar will help lower prices and increase future production. The raw sugar can be refined locally, helping to meet domestic demand at more affordable rates.
Interestingly, the government had granted export permission to the sugar industry with the promise that they would keep domestic sugar prices between Rs145 and Rs150 per kilogram. However, in the last 10 days, prices have soared to over Rs180 per kilogram.
Market experts say this sudden price increase during the crushing season is unusual and points to issues with both government action and the industry’s honesty. The industry has taken advantage of the situation to make large profits, despite earlier promises not to raise prices. Critics argue that the government has either failed to hold the industry accountable or taken any real action against them.
“This is the cycle we keep going through with governance in Pakistan, especially when it comes to protecting the public,” says Muhammad Amin, a frustrated consumer.
Analysts believe that the government’s decision to import raw sugar to control domestic prices is misguided for two main reasons. First, importing sugar is a slow process and could take up to 10 to 15 weeks. By that time, prices will have already risen, and the sugar industry will have made significant profits. Second, the real issue is not a shortage of sugar but poor administration. The government has failed to ensure that the sugar industry sticks to its promises.
“How will importing sugar fix an issue that’s caused by poor management?” asks Muhammad Amin. “Sugar is not in short supply. The country is in the middle of the crushing season. The problem is with how the government is handling the situation.”
Ghulam Abbas, a trader from Lahore, shares a similar view, calling the decision to allow exports in the first place a mistake. He believes that the import plan is another poor decision, which only shifts the blame without addressing the core issues.
“By trying to import sugar, the government is just showing its helplessness and failing to deal with the real problem,” Abbas says. “They are making things worse by offering the wrong solution twice in one season.”
