The Pakistan Sugar Mills Association (PSMA) has attributed the recent rise in sugar prices to the closure of FBR portals, government-imposed dealer controls, and restrictions on inter-provincial movement of sugar.
In an official statement issued on Monday, the association said the industry had repeatedly warned that shutting down the FBR monitoring portals would reduce supply in the market. According to the PSMA, the government was also informed in advance that such restrictions could lead to a surge in retail prices.
The association claimed that pressure was placed on sugar mills to sell imported sugar, which the public did not prefer. It said that in Sindh, portals were intentionally kept shut so imported stocks stored at the ports could be sold first, resulting in declining supply from local mills.
The PSMA added that supply constraints caused by government decisions—not the sugar industry—were responsible for the price hike. In Punjab, district administrations allegedly forced mills to sell sugar only to government-nominated dealers, who then exploited the situation by selling sugar at higher rates for their own profit.
The statement noted that with the arrival of freshly produced sugar, prices were expected to return to normal levels.
The association urged the government to immediately lift what it termed the “unconstitutional and illegal” ban on inter-provincial transport of sugar to stabilise supply across the country.
