Pakistan allows import of costly sugar after millers exported surplus stocks

ISLAMABAD: Pakistan has allowed the import of 1 million tonnes of sugar at a high price, after local millers allegedly misled the government about having surplus stocks and sought permission to export them.

The government has approved the import of sugar at Rs220 against the current domestic price of around Rs100 per kg.

The move will burden both the consumers and the national exchequer, as the imported sugar will be more expensive than the locally produced one, Geo News said.

The government has not initiated any inquiry or action against the millers, who claimed that Pakistan had excess sugar production and exported their stocks earlier this year.

The Punjab Food Department spokesperson denied the possibility of a sugar crisis, saying that Pakistan had enough sugar reserves to meet the demand.

However, sources said that the Trading Corporation of Pakistan (TCP) has written to Pakistan’s commercial attachés in Brazil for importing 100,000 tonnes of sugar.

The food department said that it had 1 million tonnes of surplus sugar in its stocks, which it would use to stabilise the market.

According to the Punjab Food Department’s sources, it is stated that depleting the surplus of domestically produced sugar will result in the entry of imported Chinese sugar into the market.

This situation could lead to a scenario where consumers would be compelled to purchase sugar at a rate of PKR 220 per kilogram, a significant increase from the government-regulated rate of PKR 100 per kilogram.