Sugar mills association advocates early approval of deregulation policy

LAHORE: The Pakistan Sugar Mills Association (PSMA) has stated that policy on deregulation of the sugar sector should be approved at the earliest so that sugarcane growers get best prices for their sugarcane crops.

In a statement, a PSMA spokesman said that last year sugarcane farmers got better rates for their crop due to the government’s non-interference. The cooperation of the governments of Punjab and Sindh along with the sugar industry further facilitated it.

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It is pertinent to mention here that sugar mills have always operated below their crushing capacity. Unless the sugar sector is completely deregulated, Pakistan’s sugar sector will neither be able to compete with the international market, nor will farmers be able to get international rates. They will not cultivate more sugarcane resulting in lesser sugar production and the government may need to import it, burdening the national exchequer.

The spokesman said since the government abolished respective zones of sugar mills, development and promotion of sugarcane crop has receded. He said rice and maize crops sectors are already deregulated and are operating on free market principles. Their farmers are getting international rates and after the deregulation of rice crop, it is adding annually nearly USD 4 billion to the national exchequer through exports.

Deregulating the sugar sector early is in national interest. The sugarcane farmers and the industry will work together in a better way which will ultimately enhance the economic development of Pakistan.

Copyright Business Recorder, 2025