With the sugarcane harvesting season fast approaching, the formation of a sugar production monitoring committee could not be more timely. Prime Minister Shahbaz Sharif has established a 12-member committee tasked with developing a robust system for monitoring and reporting sugar stocks to facilitate timely export decisions. The committee includes key figures from the ministries of trade, finance, industries, and food security, alongside representatives from the Intelligence Bureau and the Pakistan Sugar Mills Association.
This carefully composed body appears well-equipped to address the challenges at hand. The potential benefits of its work are evident: sugar production is a highly viable sector in Pakistan that, if managed effectively, could generate valuable export revenue, help reduce the trade deficit, and contribute to the national economy.
However, the sugar industry is not without its problems. Persistent tensions exist between sugar millers and sugarcane growers, with the former often wielding significant influence over production decisions. Compounding this is the issue of hoarding, which has two distinct but equally damaging aspects. On one hand, some millers prioritise exports without ensuring that domestic demand is met, driving up sugar prices locally while reaping substantial profits. On the other, hoarders artificially inflate prices by restricting supply, creating windfall gains for themselves at the expense of consumers.
This imbalance leaves sugarcane growers vulnerable, as they lack control over the prices millers are willing to pay for their crops. These dynamics have repeatedly led to scandals in past years, with various stakeholders exploiting this essential commodity at great cost to the Pakistani economy and public. The only beneficiaries here are the few individuals who control the milling and export process – who have minted themselves fortunes.
The newly constituted committee’s terms of reference include analysing data related to sugar production, consumption, and stock levels, as well as determining permissible export quantities and timings. This clear and pragmatic mandate addresses a long-standing issue that has undermined the sugar sector’s potential. It is imperative, however, that the committee’s efforts are not merely a one-off initiative. Consistent and transparent implementation is crucial if Pakistan is to prevent future crises and unlock the full economic potential of this critical industry.
