ISLAMABAD – Pakistan’s sugar industry, a powerhouse producing 84 million tonnes of sugarcane and seven million tonnes of sugar in 2024-25, should be a boon for its economy. Yet, it’s a cesspool of controversy, where a sugar syndicate dominates billions in profits while ordinary Pakistanis—farmers and consumers alike—bear the brunt. Today Pakistan News peels back the layers of this entrenched racket, exposing how political elites orchestrate a monopoly that’s strangling the nation.
Despite ranking fifth globally in sugarcane and seventh in sugar output, sugar retails at a steep Rs160 per kg. Artificial shortages and price spikes dominate headlines, a tired script replayed for decades. Behind it lies a cartel of 80-90 politically connected mill owners, raking in over Rs1.5 trillion annually through sugar sales (Rs1.4 trillion), molasses (Rs154 billion), bagasse-driven energy, and captive power ventures—shielded by government bans on new mills. “It’s a rigged game,” says Islamabad economist Dr. Ayesha Khan. “The benefits never reach the people.”
The numbers tell a stark story. From 88 million tonnes of sugarcane, mills extract 8.8 million tonnes of sugar at a 10% recovery rate, netting Rs1.4 trillion at current prices. Molasses, a byproduct at 4-5% yield, adds 4.4 million tonnes—worth Rs154 billion at Rs35,000 per tonne—mostly exported for ethanol. Bagasse, yielding 24 million tonnes, powers mills and generates surplus electricity sold off-grid, dodging Rs50 per kWh national rates. Some mills even churn out steel, leveraging cheap captive power to undercut rivals, saving billions more.
Who’s behind this syndicate? Political dynasties—the Zardaris, Sharifs, Bhuttos, Chaudhris, and Tareens—alongside bureaucrats, business tycoons, and retired military brass. They lobby for tax breaks, secure cheap State Bank loans, and thrive on export subsidies, while a ban on new mills locks out competition. Farmers, tied to canal water access, must sell to these mills at depressed rates, often waiting months for payment. Consumers, meanwhile, fork over inflated prices—Rs160 per kg far exceeds global norms.
The cartel’s playbook is blatant. Annual hoarding creates “shortages,” triggering export approvals at below-market rates, only for mills to later demand raw sugar imports under a “crisis” guise—pocketing subsidies both ways. When global prices dip, they block imports to keep domestic prices high. Utility Stores and “Sasti Cheeni Bazaar” get taxpayer-funded sugar, yet the cartel laughs to the bank. “It’s state-captured capitalism,” Khan notes, pointing to billions in bailouts masked as industry aid.
The fallout hits hard. Farmers can’t negotiate fair prices, stuck in a cycle of exploitation. Independent steelmakers pay higher energy costs, unable to compete with mill-backed plants. Consumers face inflated sugar and ethanol prices, while new mill hopefuls are shut out by policy. The syndicate’s grip—fortified by no new licences—ensures this Rs1.5 trillion empire grows unchecked.
Breaking this stranglehold demands bold reform. Lift the ban on new mills and free up trade post-crushing. Slash subsidies fueling billionaire profits. Enforce anti-trust laws to bust price-fixing. Empower farmers with fair pricing, timely payments, and jaggery production rights. Without action, Pakistan’s economy bleeds while a few families feast.
