Federal government takes action against sugar mills amid ongoing sugar crisis
File photo
File photo
ISLAMABAD (Suno News): The federal government has taken control of all sugar stocks across the country to overcome the sugar crisis.

According to Ministry of National Food Security officials, 1.9 million metric tons of sugar has gone under government control instead of sugar mills. The decision was taken in view of the fear of an artificial shortage of sugar and further increase in prices.

Officials said that the names of 18 sugar mill owners have also been placed on the ECL, and the names placed on the ECL will also be released in a few days. FBR agents have been deployed on the sugar stock in all sugar mills, while a track and trace system has been installed on the sugar stock of sugar mills.

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On the other hand, a statement issued by the Pakistan Sugar Mills Association said that all mills are supplying sugar at Rs165 per kg. The country has ample stocks of sugar till mid-November 2025. The supply chain was affected due to some administrative measures taken by the government.

According to the Sugar Mills Association, sugar supply is continuing as usual after the improvement. Mills are only concerned with ex-mill prices. The retail price of sugar is usually determined by market forces, but now the government is doing it.

The association said that dealers are selling sugar to industrial and commercial institutions at higher profits instead of domestic consumers. Dealers and the sugar mafia are creating an impression of an artificial shortage of sugar for their own purposes. Linking sugar prices to exports is completely contrary to reality.

The Sugar Mills Association further stated that in the past years, the production costs of the mills have increased manifold, due to which the sugar mills have had to bear considerable losses. Due to continuous losses, 12 sugar mills have been closed and are up for sale. The solution to all these problems is possible only through deregulation of the sugar sector.