After scrapping the support price in 2024, Pakistan witnessed a severe drop in sugar production—from 7.6 to 5.8 million tons—leading to lost surplus, rising imports, and concerns over farmer welfare. Authorities now plan policy changes to protect growers and stabilize the market.
Following the federal government’s decision to abolish the minimum support price in late 2024—part of conditions tied to a new IMF agreement—Pakistan’s sugar industry has experienced a sharp decline in production. The Express Tribune
At a recent meeting of the National Assembly’s food security committee, Federal Minister Rana Tanveer Hussain revealed that while sugar output was projected at 7.2 million tons this year, actual production only reached 5.8 million tons, down significantly from last year’s 7.6 million tons. Domestic demand, meanwhile, stands at about 6.3 million tons. The Express Tribune
Removal of the support price caused sugar rates to fall (previously fixed at Rs210 per kilogram), and no export subsidies were maintained. The surplus that existed previously—about 1.3 million tons—has disappeared, harming farmers who now face losses instead of gains. The Express Tribune
Committee members emphasised that without regulatory intervention, farmers are at risk. They urged government protection, especially against importing sugar during the crushing season—which could further depress local industry. The Express Tribune
Minister Hussain also noted that sugarcane cultivation didn’t meet targets, missing by around 1 million tons. Though last year’s surplus allowed sugar exports worth $450 million, Pakistan now needs to import sugar worth about $150 million. He blamed price hikes partly on market manipulation by powerful groups (described as the “sugar mafia”). The Express Tribune
To mitigate these issues, the government is considering reinstating support prices for wheat, consulting with the IMF, and introducing a new wheat policy by early October aimed at protecting both farmers and consumers. The Express Tribune
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