Dar urges retail sugar price to stay below Rs164 amid rising costs

(Web Desk): Deputy Prime Minister Ishaq Dar on Wednesday stated that retail sugar prices should not exceed Rs164 per kilogram after the Competition Commission of Pakistan (CCP) warned sugar mills against price manipulation.

Despite the government’s efforts, including the prime minister’s announcement to maintain the retail price at Rs130 per kg, sugar prices in the market have continued to rise. In some areas, the price has exceeded Rs180 per kg.

Sugar consumption in Pakistan is expected to increase slightly to 6.7 million tonnes, driven by population growth and higher demand from the food processing sector. Last year, Pakistan produced over 6.84 million tonnes of sugar, and production is expected to rise in 2024-25.

Speaking to journalists, Dar said that news reports have shown that sugar prices have spiked to Rs178-179 per kg, which he described as "unacceptable" to the prime minister.

"We had a late-night meeting yesterday to address this issue and find a solution to provide relief to the public. We aim to reach a reasonable price so that consumers won’t have to hear about sugar prices reaching Rs180 to Rs200," Dar said.

He added that a subcommittee would be formed, led by Rana Tanveer, the Minister for National Food Security and Research. This committee will work until April 19 to assess the cost of sugar and investigate the claims of sugar mills, which argue they are not responsible for the price hike.

Dar emphasized that the goal is to create a system that allows the public to buy cheaper sugar. However, he noted that this would require setting up a proper distribution channel and implementation mechanism.

Regarding the Federal Board of Revenue’s (FBR) sales tax on sugar, Dar mentioned that it would be set at Rs154 to Rs155 per kg, with a price cap of Rs159. He assured that the government, along with the CCP, would work to gather intelligence reports and monitor the situation closely.

The CCP has warned that if any anti-competitive practices are found among sugar mills, strict enforcement and policy actions will be taken to address the issue and protect consumers.