Business leader and former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr. Shahid Rasheed Butt, on Thursday, said the powerful sugar mafia should be controlled as it continues to exploit the masses.
He said the sugar mafia comprises influential politicians, industrialists, and business tycoons who manipulate the production, pricing, and distribution of sugar to maximize their profits at the expense of the masses.
Shahid Rasheed Butt said in a statement issued here today that the unchecked control has led to artificial price hikes, shortages, and government bailouts, making sugar one of the most controversial commodities in Pakistan’s economy.
The business leader said that the sugar industry in Pakistan has always been closely tied to political elites. Policies are often tailored to benefit these groups rather than the public.
Sugar mill licenses have always been given to people with strong political connections. This practice has allowed a select few to dominate the market, and the government has, at times, provided subsidies and export incentives that directly benefit these mill owners while failing to protect consumers.
Shahid Rasheed Butt said that one of the most notorious tactics of the sugar mafia is creating artificial shortages. They drive up prices by stockpiling sugar and limiting supply, ensuring maximum profits.
He observed that despite sufficient production, sudden shortages frequently occur, leading to price hikes that burden the average consumer.
The mafia almost annually unfolds a major sugar crisis by manipulating supply chains and exploiting government policies. Mill owners repeatedly hoard sugar, underreport production, and engage in fraudulent exports to receive subsidies.
Despite revelations, punitive action against the perpetrators has always been minimal, illustrating the deep entrenchment of the sugar mafia within the political system.
Shahid Rasheed Butt said that while consumers face inflated prices, sugarcane farmers also suffer under the mafia’s control. Farmers often struggle to receive fair as mill owners delay payments and force them to sell at lower rates.
Many farmers have no choice but to accept unfavourable terms or face financial ruin. This exploitation discourages agricultural productivity and further deepens rural poverty.
With sugar prices remaining volatile for consumers and no long-term solution in sight, the impact of this exploitation extends to households, small businesses, and the overall economy. Pakistan, one of the highest consumers of sugar in the region, is withstanding the worst of this price manipulation.
Over the years, successive governments have promised action against the sugar mafia, but real change has been slow. While inquiry reports and investigative commissions have provided damning evidence, the lack of vigorous enforcement and accountability allows the mafia to continue its operations with little consequence.
Reforms in the sugar industry, such as transparent pricing mechanisms, strict regulations on hoarding, and fair trade practices, are crucial. These reforms can protect farmers and consumers, and until they are implemented, the sugar mafia will continue to exploit Pakistan’s economy. However, with these reforms, there is hope for change and relief for ordinary citizens.
