Key Takeaways
- Prime Minister Shehbaz Sharif defended the government's decision to export 108,000 metric tonnes of imported sugar.
- The move aims to prevent financial losses due to the approaching expiry of the commodity's shelf life.
- The government imported sugar to ensure domestic availability and protect consumers from price hikes.
Prime Minister Shehbaz Sharif has defended the government's decision to export 108,000 metric tonnes of imported sugar, stating that reports circulating in the media are 'fallacious'.
During a recent meeting of the Federal Cabinet, the Prime Minister clarified that the decision was made to prevent financial losses from the impending expiry of the sugar's shelf life.
The government had previously imported 300,000 metric tonnes of sugar, of which 192,000 metric tonnes were sold domestically, leaving 108,000 metric tonnes in storage.
The Deputy Prime Minister informed the Cabinet that the remaining stock was required to be disposed of urgently due to its two-year shelf life approaching expiry.
International sugar prices have increased, making the export of the remaining stock a potentially viable option to recover the landed cost and carrying cost of the commodity.
The government's decision to export the sugar comes against the backdrop of earlier policy decisions to allow substantial exports when the country had reported a surplus.
In 2024-25, the government allowed the export of around 790,000 metric tonnes of sugar after the industry reported a surplus, maintaining a buffer stock of approximately 504,000 metric tonnes.
However, heatwaves, crop diseases, and competition from other crops reduced domestic sugar output by around 15 percent, leading to supply constraints and market distortions.
Retail sugar prices rose to around Rs220 per kilogramme in some markets, with concerns that they could rise beyond Rs250 per kg.
To address the emerging shortage and contain price increases, the government allowed imports to ensure domestic availability and protect consumers.
