PSMA Rejects Price-hike Link To Exports

Faizan Hashmi Published March 21, 2025 | 08:20 PM

LAHORE, (UrduPoint / Pakistan Point News - 21st Mar, 2025) The Pakistan Sugar Mills Association (PSMA-Punjab Zone) has refuted claims that sugar exports are responsible for rising prices, stating that the industry had a surplus of 1.2 million metric tons of sugar by September 2024, valued at Rs. 250 billion and pledged with banks at high-interest rates.

The spokesman stated that exports were only allowed after verifying surplus stocks and were crucial to preventing industry collapse. He highlighted that an agreement with the government in June 2024 set the ex-mill sugar price at Rs. 140 per kg during the export period, while record-high sugarcane prices (up to Rs.

750 per maund) have benefited farmers and ensured future crop sustainability. He attributed recent price hikes to market manipulation by hoarders and speculators, noting that domestic consumers currently have access to subsidised sugar at Rs. 130 per kg at designated stalls.

The industry has long demanded independent cost audits for transparency and proposed a two-tier pricing system, distinguishing between the commercial sector, which consumes 80pc of sugar and is unregulated, and domestic consumers. The spokesman urged the government to develop a support mechanism for household consumers in collaboration with the sugar industry.