On July 29, 2025, the federal government of Pakistan initiated strict oversight of sugar mill stocks after multiple mills failed to comply with a recently signed pricing and supply agreement. The move aims to stabilize sugar prices and avoid nationwide shortages.
Background of Sugar Mill Stocks
The issue stems from a July 14, 2025 agreement between the government and the Pakistan Sugar Mills Association (PSMA). This agreement fixed the ex-mill sugar price at Rs165 per kilogram from July 15 to August 15. However, several mills reportedly delayed releasing their stock, raising concerns about potential price hikes and artificial shortages.
In response, the Federal Minister for National Food Security and Research led a high-level meeting expressing serious concern over this non-compliance. Officials have now been instructed to monitor sugar stock levels across all mills, with oversight teams deployed to ensure the release of stock as agreed.
Government Efforts
To support the enforcement process, the government has also set up a Grievance Redressal Committee for millers to report operational issues. Additionally, a real-time communication channel has been launched between government bodies and industry representatives for smoother coordination.
PSMA Chairman Chaudhry Zaka Ashraf acknowledged that while some mills were compliant, operational challenges remained. He urged authorities to differentiate between compliant and non-compliant entities, advocating fair treatment for all.
The sugar industry in Pakistan has long faced issues such as hoarding, price manipulation, and supply delays, especially during peak demand seasons. The government’s latest intervention underscores the need for transparency, real-time oversight, and market discipline to protect consumers from sudden price shocks.
Sustained collaboration between the government and the private sector will be critical to ensure long-term price stability and a reliable sugar supply across the country.
Published in SouthAsianDesk, July 29th, 2025
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