Pakistan puts sugar mill owners on no-fly list as minister defends $150M import

Pakistan’s federal government has placed several sugar mill owners on the Exit Control List (ECL), as National Food Security Minister Rana Tanveer Hussain on Thursday defended a controversial decision to import 500,000 metric tons of sugar at an estimated cost of $150 million.

Speaking at a press conference in Islamabad, the minister said the import is necessary to ensure market stability and adequate supply, asserting that sugar is currently available in sufficient quantities and prices remain under control. He said Pakistan maintains a buffer stock of 500,000 metric tons and an overall reserve of 2 million metric tons - sufficient to meet domestic demand.

Tanveer dismissed media criticism of the import decision as sensationalism, likening it to a “seasonal frog that appears only during the rain.” He clarified that sugar exports and imports have occurred routinely in previous years and are based on evolving market needs.

According to the minister, past sugar exports were allowed due to surplus stocks, with the global rate then standing at $750 per ton. Domestically, the ex-mill price was fixed at PKR 140 per kg, with the expectation that retail prices would follow within a margin of PKR 8 to 10. Contrary to claims that exports caused domestic prices to surge, Tanveer said retail prices actually dropped to PKR 119 per kg following the exports.

He pointed to climate change as a key factor in reduced sugarcane yield, despite an expansion in cultivated area. While initial projections estimated production at 7 million metric tons, the actual output was 6.3 million metric tons. As a result, the government halted further exports—including 40,000 metric tons—to prioritize local availability.

Tanveer also broke down the country’s sugar consumption pattern, noting that 80% is used by commercial sectors such as bakeries, beverage producers, and confectioners, while only 20% is consumed at the household level. This, he argued, should be kept in mind when evaluating price impacts on the public.

Currently, sugar is being sold at PKR 172–173 per kg, with ex-mill rates at PKR 165. The government has fixed prices through three-month agreements with sugar mills, capping any increase at PKR 2 per kg and holding the ex-mill ceiling at PKR 175 until new production enters the market.

He claimed Pakistan earned $400 million from exporting sugar at $500 per ton, though revenues could have been higher had exports occurred when global prices peaked at $750 per ton.

Tanveer said that although the cabinet had approved the import of up to 500,000 metric tons, the government will proceed with 300,000 metric tons for now, costing about $150 million.

Drawing a regional comparison, he claimed that sugar is selling at PKR 150 per kg in India, PKR 187 in Bangladesh, PKR 173 in Afghanistan, and PKR 250 in Iran, while Pakistan’s price stands at PKR 173 within a comparable range.

The minister blamed hoarders and stockists for price manipulation and said a crackdown is underway. “People will see the heat very soon,” he warned, noting that those involved have been placed on the ECL.

Tanveer also cited former finance minister Miftah Ismail, claiming that even he acknowledged Prime Minister Shehbaz Sharif’s initial hesitation in approving sugar exports due to the risk of domestic shortages.

He added that the next sugarcane crushing season is set to begin on November 15, and the government expects the fresh harvest to help stabilize prices.