LAHORE: The Pakistan Sugar Mills Association (PSMA), citing media reports, explained that recent increases in sugar prices are due to the closure of FBR portals, restrictions on inter-provincial sugar movement, and the requirement to sell sugar through government-appointed dealers.
A PSMA spokesman said the sugar industry had long warned the government that closing the portals would lead to supply shortages and rising prices.
He added that the government pressured mills to prioritize the sale of imported sugar, which most consumers rejected, and with the portals closed, local sugar could not reach the market, causing prices to climb. In Sindh, portals were closed to prioritize imported sugar at Karachi Port.
The spokesman emphasized that the sugar industry neither benefits from nor is responsible for the price hike, as government curbs reduced market supply. In Punjab, district administrations forced mills to sell only to government-designated dealers, who then sold sugar at higher rates.
The spokesman noted that with the start of the sugar crushing season, prices are expected to stabilize as fresh sugar enters the market.
He urged the government to remove unconstitutional and illegal restrictions on inter-provincial sugar movement so that the commodity can be supplied fairly across all provinces.