The Public Accounts Committee (PAC) of Parliament on Tuesday witnessed a heated debate on the ongoing sugar crisis, where members were given a detailed briefing on the issue.
During the PAC meeting, tough questions were raised regarding the export and import of sugar, the rising prices, and the monopoly of sugar mill owners.
Members of the committee harshly criticised the government, the sugar mafia and the Sugar Advisory Board.
The Auditor General of Pakistan informed the meeting that sugar mills earned Rs300 billion from the recent fluctuations in sugar prices.
The Industries and Production secretary informed the meeting that the sugar industry is regulated by provincial governments, adding that the Sugar Advisory Board has representatives from the federal and provincial governments.
The board reviews the existing sugar stocks, local demand and production. The crushing season runs from November 15 to March 15 every year, the meeting was informed.
According to the Secretary Industries and Production, over the past 10 years, the country exported 3.927 million tons of sugar.
In the year 2023-24, 6.8 million tons of sugar were produced, while the total stock was 7.6 million tons, of which 800,000 declared surplus.
Based on this, the ECC approved the export of 790,000 tons, but only 750,000 tons could be exported.
Later, it was decided to import 500,000 tons of sugar to meet the local sugar demand, the secretary added.
The Industry Secretary said that the current sugar stock is sufficient to meet domestic demand until November. However, imports may be needed later this year.
The Secretary Food Security said that problems arose due to reduced sugarcane production and a delay in the crushing season.
According to him, the current ex-mill price of sugar is Rs165 per kg, which could go up to Rs167 in August and Rs169 in September.
However, when questioned by the PAC chairman, he admitted that the average retail price of sugar is Rs173 per kg.
The PAC chairman and other members expressed serious concern over the rising prices, saying that sugar was being sold in the market for up to Rs210 per kg.
The chairman said that ‘the public is being humiliated just to please 42 sugar mills’ and reminded that he had asked for a list of sugar mill owners.
The secretary industries said that he had a list of mills, to which the PAC chairman expressed his anger and said that details of the owners and directors, not the sugar mills, were required.
The committee asked the authorities to immediately submit a list of the sugar mill owners.
Later, the Ministry of Industries and Production submitted a list of sugar mill owners and directors, along with the names of sugar mills involved in export and import of sugar, and the countries to which the exports were made.
According to the briefing, 749,000 tons of sugar worth $400 million was exported last year, of which the largest amount – 494,000 tons – was sent to Afghanistan.
The largest amount of sugar was exported by JDW Sugar Mill.
PAC members commented that sugar exported at Rs117 per kg was later imported at Rs170.
Khawaja Shiraz raised the question, “Why do these lootings only occur when the mill owners’ government comes to power?”
When the PAC chairman asked what action had been taken against those sugar mill owners who had promised not to raise prices but did so anyway, the industries secretary explained that the “ex-mill” price of sugar is fixed on the recommendation of the Sugar Advisory Board.
At the end, the PAC demanded that the government publicly disclose the names of sugar mill owners, their business interests and their role in export and import so that those responsible for the sugar crisis can be identified.
During the meeting, the Auditor General of Pakistan revealed that the sugar mills earned Rs300 billion due to the recent fluctuations in sugar prices. To which the PAC chairman said that only 42 families have pocketed Rs300 billion.
