Govt moves to 'deregulate' sugar industry

The Pakistan government has ‘decided’ to end its 77-year control over sugar prices by deregulating the industry, ARY News reported on Monday, citing sources in the Ministry of National Food Security.

A formal summary to deregulate the sugar sector has been prepared and is expected to be presented to the Prime Minister later this week. Federal Minister for National Food Security Rana Tanveer Hussain will brief the Prime Minister on the proposal, the sources added.

As part of the deregulation plan, the government has also proposed to lift the ban on establishing new sugar mills, allowing private investors to set up new units under an open-market framework.

Once deregulated, the government will no longer hold authority over the import and export of sugar.

Moreover, the official mechanism for fixing sugar prices will be abolished, enabling pricing to be determined solely by market forces, the sources confirmed.

If approved, the decision is expected to transition the sugar sector into a fully market-driven industry, where supply and demand will dictate retail and wholesale prices without state intervention.

Meanwhile, sugarcane farmers of Punjab and Sindh have decided in a Jirga here to boycott supply of the crop to sugar mills on low price.

A gathering of the sugarcane farmers from Sindh and Punjab warned that the growers will not harvest the crop if the government wouldn’t fix per maund rate of sugarcane at Rs. 600.

“We will set our standing crops on fire but won’t be blackmailed by the sugar mills mafia,” farmers speaking at the gathering announced.