PKI reiterates demand for establishment of fully deregulated sugar sector

LAHORE: Pakistan Kissan Ittehad (PKI) has reiterated its demand for establishing a fully deregulated sugar sector in which imports, exports, production and pricing are determined by market forces, without government permission, approval or administrative controls.

It also urged that sugar mills should operate independently within a competitive market framework.

PKI President Khalid Mahmood Khokhar in a statement on Friday also demanded that no new sugar mills should be permitted until the industry achieves a minimum 75% capacity utilization, ensuring efficient use of existing infrastructure and resources before additional capacity is introduced.

He also proposed that once new mill establishment is permitted, a minimum distance of 50 miles between sugar mills should be maintained. This would help prevent excessive concentration, improve commercial viability, and promote healthy competition within the industry.

The Sugar Acts in all provinces be abolished to eliminate regulatory distortions and create a genuinely deregulated, market-driven sugar industry, he further said.

Khalid Khokhar advocating his demand said this year, a bumper sugarcane crop covering an area of over 3.5 million acres is nearly ready for harvest, with production expected to increase by 10 to 15 percent compared to 89.45 million tons, last year.

Meanwhile, the country holds a surplus sugar stock of approximately 1.3 million tons, a situation that could force farmers to sell their crops at lower rates. To safeguard the interests of farmers, we urge the government to open exports of around 1 million tons of sugar prior to the crushing season, commencing November 15, 2026.

Farmers faced a similar situation to 2017-18; a delay in the decision to export led to a significant drop in sugarcane prices, resulting in a collective loss of approximately PKR 100 billion for the farmers, he added.

Drawing attention of the government towards country’s abundant sugar stocks and the anticipated situation to be faced by the farmers, he warned if these surplus stocks are not exported in a timely manner, there is a risk of downward pressure on local market prices, that can create a financial burden on sugar mills, and eventually sugarcane farmers will take the hit in the upcoming crushing season.

He said export of surplus sugar should be permitted while fully safeguarding the country’s domestic requirements.

He also mentioned that presently, he also emphasized that at present, farmers have been financially crushed, experienced unbearable losses on crops such as wheat, maize, potatoes, and vegetables during last three years, they are looking to the government to redress and reset the farming a viable profession for them and the youngsters, moving to urban centers to find jobs.

Pakistani farmer plays a fundamental role in the national economy and food security. It is crucial that sugarcane growers receive fair compensation and timely payments for their hard work. Exporting surplus is a practical step that could benefit all stakeholders, the sugar industry, the farmers, and the national economy. He hoped that the government will make a prompt and positive decision on this important matter in the broader interest of the farmers.

Copyright Business Recorder, 2026