At the end of 2024, the federal government negotiated a new IMF agreement; In exchange, Pakistan has ended the minimum support price. He had to have massive consequences, especially for the wheat and sugar industry. Today, at the Standing Committee of the National Assembly for Food Safety, these consequences have been felt.
Federal Minister Rana Tanveer Hussain explained that last year, sugar production was 7.6 million tonnes while domestic demand was 6.3 million tonnes, leaving an excess of 1.3 million tonnes, which had negatively affected the industry. This year, sugar production was estimated at 7.2 million tonnes, but real production remained 5.8 million tonnes.
“The government has reduced the prices of sugar from RS 210 per kg, and no grant has been provided on sugar exports.” Without the support price, the surplus has only affected the farmer.
Rana Hayat, a member of the committee, urged the authorities to offer a certain protection to farmers in the future. Officials of the Ministry of Food Security noted that wheat prices had increased due to floods but are now under control. Rana Hayat asked why sugar prices were not regulated in the same way, warning that importing sugar during the overwhelming season could harm farmers.
Rana Tanveer Hussain added that last year, the production of sugar cane dropped by 1 million tonnes below the lens. “We have authorized exports of excess sugar, which have gained $ 450 million in currencies. Now we import sugar worth $ 150 million, and the price increase was caused by the mafia,” he said. He also mentioned that an exceptional sugar cane harvest is expected this year.
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The Minister also stressed that wheat production has decreased due to the lack of support prices, and a new drop is expected this year. The government has decided to consult the IMF to restore the price of wheat support and try to convince the IMF to facilitate restrictions on food.
Rana Tanveer Hussain said that the reduction in government control had increased wheat prices on the market. A new wheat policy should be implemented from the first week of October, aimed at protecting farmers and consumers.
“If wheat production decreases by 6% more this year, Pakistan may need to import wheat worth $ 1.5 billion, which would grant a significant burden on the national treasure.”
The production of wheat has suffered enormously once the support price is completed, which was already low with the MSP not available, and now the wheat offer has reached low danger -allysy levels with floods.
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This year, sugar prices have experienced a recent increase due to the influence of the mafia. The authorities have systematically blamed the high prices of alleged collusion among the influential actors in the sugar sector, often called “sugar mafia”, which is accused of hoarding and handling the offer to inflate prices. In response to the crisis, the federal government had previously announced a temporary abolition of sugar import taxes in order to reduce internal prices.
The association of wholesalers have always criticized the approach based on imports and rather urged the government to take strong measures against the heton. They called for warehouse inspections and repression on illegal storage, arguing that such an application could considerably reduce sugar prices on the local market.
