Last year’s decision to allow sugar exports was taken against the backdrop of surplus production. Initial estimates placed output at around seven million tones, comfortably exceeding domestic consumption and reserve needs. In such a scenario, preventing exports would have depressed prices, hurting farmers and mills alike, discouraging future cane cultivation and weakening a vital agro-industrial chain. By permitting exports, the government aimed to protect growers’ incomes and the viability of the sugar industry, which supports millions of livelihoods across rural Pakistan.
The statement of Federal Minister for National Food Security and Research Rana Tanveer Hussain before the National Assembly provides a revealing insight into the complex, often misunderstood, economics of Pakistan’s sugar sector. His explanation of why sugar exports were allowed, followed later by limited imports, underscores a reality that policymakers frequently face: managing agriculture in a climate-vulnerable, data-deficient and politically sensitive environment requires flexibility, not rigid dogma.
However, agriculture does not operate in a vacuum. Climate-related disruptions from erratic rainfall to heat stress altered crop outcomes, bringing actual production down to about 6.8 million tones. When this was reconciled with consumption and strategic reserves, a shortfall emerged. The government’s response allowing limited imports of around 300,000 tons was therefore not a policy U-turn, but a market-stabilizing correction based on updated realities. In volatile commodity markets, such adaptive policy making is not a weakness; it is a necessity.
Importantly, the minister acknowledged what many consumers experienced: sugar prices were pushed up by manipulation from some manufacturers and producers. Yet he also pointed out that government intervention prevented a worst-case scenario. With prices contained around Rs 200 per kilogram instead of spiraling towards the feared Rs250 mark, particularly in remote areas like Balochistan, the intervention achieved its primary goal shielding consumers from runaway inflation. The transparent procurement process through the Trading Corporation of Pakistan, with international suppliers, live video tendering and clearly defined quality standards, further strengthened the credibility of the government’s actions.
Equally significant is the government’s move towards end-to-end deregulation of the sugar sector, based on the recommendations of a high-level committee chaired by Sardar Awais Leghari. Decades of excessive controls, price distortions and ad-hoc interventions have created opportunities for rent-seeking and cartelization. A well-designed deregulation framework, agreed upon by federal and provincial stakeholders, offers the promise of a more competitive, efficient and transparent market one where prices reflect genuine supply and demand rather than artificial scarcity.
The minister’s emphasis on farmers’ dues also deserves recognition. In a country where growers are often the weakest link in the value chain, the assurance that mills were compelled to clear payments is vital. Sustainable agriculture cannot exist if farmers are pushed into debt and uncertainty.
Beyond sugar, the broader picture presented was one of pragmatic governance. Stabilized fertilizer supplies, declining potato and maize prices due to global market trends, and the approval of a National Wheat Policy that removes inter-provincial movement barriers all point towards a more integrated and market-friendly agricultural system. The admission that Pakistan lacks credible, consolidated crop data and the commitment to build such systems is a refreshing moment of honesty and a crucial step towards better future planning.
Finally, the minister’s warning about excessive sugar consumption and its link to diabetes reflects a mature understanding that food policy is also health policy. As Pakistan moves forward, balancing farmer welfare, consumer protection, market efficiency and public health must remain the guiding principle. On that score, the government’s recent actions, as explained in the National Assembly, mark a responsible and forward-looking approach.