Pakistan Institute of Development Economics

PIDE Economy Watch

The Sugar Industry Of Pakistan – Understanding Structural And Regulatory Underpinnings Of The Current Sugar Crisis

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Pakistan is ranked 7th in the world terms of both sugar production and export and is ranked 8th in its consumption (GoP, 2019a). Since 2010-11, Pakistan consistently has surplus sugar production and has earned USD 2.3 billion through exports. However, the recent sugar crisis has highlighted the important issue of export subsidy on sugar. Before the government allowed the export of sugar in December of 2018, the retail price of sugar was Rs 55. It started to increase thereafter. The export subsidy was granted at the rate of Rs 5.35/kg amounting to Rs 2.47 billion which boosted up the sugar export.