Climate Impact Blamed for Sugar Output Dip

Federal Minister for Industries and Production, Rana Tanveer Hussain, has dismissed reports of a sugar crisis, stating that the commodity is available in ample quantity and remains affordable for the public.

Speaking at a press conference in Islamabad, the minister said the media had exaggerated concerns about sugar shortages and pricing. He explained that while some claimed sugar was exported and later imported at high prices, such practices have occurred for years and follow seasonal patterns.

Rana Tanveer said sugar exports were approved in phases after discussions with the Sugar Advisory Board, which includes federal and provincial representatives. At the time of the export proposal, international prices were high, and a fixed ex-mill rate of Rs140 per kg was agreed. Following the export, the local market saw prices drop to Rs119 per kg.

The minister revealed that Pakistan earned $450 million from sugar exports at $500 per ton, though global prices had reached $750 per ton. Export approval was given for 7.5 million tons, while sugar imports were capped at 500,000 tons—of which only 300,000 tons are being brought in.

He clarified that climate change had affected sugar production, despite an increase in sugarcane cultivation. This shortfall led the Prime Minister to halt further exports. The country still produced 6.3 million metric tons of sugar—enough to meet domestic needs.

Rana Tanveer added that price spikes were largely due to hoarding and speculative activity, which are now under official scrutiny. Sugar currently sells for Rs173 per kg, with slight regional differences. He pointed out that household consumption makes up only 20% of total usage, with the rest used commercially.