Deputy Prime Minister Ishaq Dar announced that retail sugar prices should not exceed Rs164 per kg, following warnings from the Competition Commission of Pakistan (CCP) against price manipulation. Despite government efforts to maintain rates at Rs130 per kg, market prices have surged above Rs180, causing public concern. Sugar consumption is projected to reach 6.7 million tonnes, with production expected to rise in 2024-25.

Dar addressed the issue, stating that the government held urgent meetings to find a solution benefiting both consumers and producers. A subcommittee, led by Rana Tanveer, will investigate pricing issues and submit findings by April 19. He emphasized the need for a distribution system to ensure affordable sugar for the public while preventing industry losses.

The FBR’s sales tax on sugar will be set at Rs154-155 per kg, with a price cap of Rs159. The government, alongside the CCP, will gather intelligence to prevent market exploitation. The CCP reaffirmed its commitment to strict enforcement against anti-competitive activities, warning of severe penalties for violations.

The CCP’s 2020 inquiry revealed price-fixing and supply control by sugar mills, coordinated through the Pakistan Sugar Mills Association (PSMA). Raids led to a Rs44 billion fine on sugar mills and the PSMA in 2021, one of the largest penalties in CCP history. The government aims to implement a two-tier pricing system to protect consumers from unjustified price hikes.