Sugar mills claim officials blocking direct sale to market

ISLAMABAD: The Pakistan Sugar Mills Association (PSMA) has accused district administrations of forcing sugar mills to sell sugar exclusively to government-nominated dealers, preventing them from making direct sales to the open market.
In a statement, the PSMA said that regarding the recent reports of rising sugar prices, the association had repeatedly informed the government—through various letters and press releases since early October—about the negative impact of unnecessary sugar imports. It also urged authorities to keep the Federal Board of Revenue (FBR) portals open to ensure a continuous supply of sugar in the domestic market.
A PSMA spokesperson stated that the first letter on the issue was sent to the government on October 4, followed by additional letters on October 9 and October 15. The association had clearly requested that the government lift the ban on the closure of FBR portals as soon as possible to allow the steady supply of locally produced, high-quality sugar and maintain price stability.
However, according to the PSMA, the portals remained closed to promote the sale of low-quality imported sugar, which led to a market shortage and a subsequent increase in prices. The association emphasized that the sugar industry is neither the beneficiary nor responsible for the recent price hike.
“The sugar industry has been consistently drawing the government’s attention to this critical issue,” the spokesperson said. “Had the authorities addressed our concerns in time, the current situation could have been avoided.”
The PSMA further alleged that district administrations in several regions are compelling mills to sell only to designated dealers, which is disrupting the sugar supply chain and worsening the market situation.