Draft policy on deregulating sugar sector finalised
ISLAMABAD: The government has finalised the draft policy for deregulating the country’s sugar sector, under which sugar mills will be allowed to import raw material, a senior official of the Ministry of National Food Security and Research (MNFS&R) informed a parliamentary panel on Tuesday.
Briefing the National Assembly Standing Committee on National Food Security and Research, the official said the deregulation policy was prepared by a high-level committee constituted by the prime minister.
The meeting of the standing committee was chaired by MNA Syed Hussain Tariq.
Under the proposed policy, amendments will be made to sugarcane-related laws, while the ban on establishing new sugar mills will be lifted. However, the Sugar Advisory Board (SAB) will remain intact to safeguard the interests of sugarcane growers, the official said, while briefing the committee on the government’s future policy for the deregulation of the sugarcane industry and the measures proposed to safeguard the interests of sugarcane growers.
He added that a meeting of the SAB would be held in the coming days, during which issues related to the sugarcane crushing season would be discussed.
Chairman of the committee, Syed Hussain Tariq, noted that the current price of sugarcane is around Rs400 per maund. He said mills had briefly raised the price to Rs471 per maund but reduced it once farmers began harvesting their crops.
Another MNFS&R official informed the committee that sugarcane crushing had started, and so far 11 million tons of sugarcane had been crushed, producing around 900,000 tons of sugar during the current season.
Tariq observed that, according to official figures, only 12 percent of sugarcane crushing had taken place so far compared to last year. He warned that delayed crushing at the end of the month of December would severely harm growers, as sugarcane begins to lose weight in January. He questioned who would compensate farmers for such losses.
He stressed the need for a clear mechanism to regulate sugarcane prices, warning that without it the agriculture sector would further deteriorate. He pointed out that sugar prices typically decline during the crushing season and rise once crushing ends.
The committee chairman said the conditions set by the International Monetary Fund (IMF) must be fulfilled, but emphasized that efforts should be made to protect the sugarcane sector.
The committee expressed serious concern that the SAB has yet to convene its first meeting, despite the crushing season nearing its end.
The committee stressed that the government must formally announce the crushing season to prevent manipulation and monopolistic practices by sugar mills. It further emphasized that sugar imports should only be allowed when genuinely required, and not immediately before or during the crushing season.
The committee was informed that the minimum support price for sugarcane has not been announced for the past two years due to the IMF’s policy of zero market intervention.
MNA Rana Muhammad Hayat Khan accused the sugar industry of exploiting sugarcane growers and called for strict action to prevent their exploitation.
Another committee member, MNA Zulfiqar Ali Behan, suggested that farmers should be allowed to produce raw sugar. He alleged that the SAB had failed to protect farmers’ interests and instead favoured the sugar industry.
During the meeting, MNFS&R briefed the Committee on the sharp decline in rice exports, which have fallen to below 30 percent. He informed the parliamentary body that, during three meetings with the Rice Exporters Association, it was highlighted that India’s re-entry into the global rice market, exporting 45–50 million tons, has significantly affected Pakistan’s exports. Pakistani rice was noted to be less competitive due to higher prices, partly because India enjoys Free Trade Agreement (FTA) status and provides a 24 percent subsidy to its rice sector, he said.
The committee directed the ministry to pursue FTA status on a priority basis to enhance rice exports and strengthen the national economy.
It was also decided that the Ministry of Commerce and the Ministry of Industries would be invited to the next meeting to develop a comprehensive strategy in this regard.
The meeting was attended by MNAs Abdul Qadir Khan, Syed Javed Ali Shah Jillani, Musarrat Asif Khawaja, Minister for National Food Security and Research Rana Tanveer Hussain, and senior ministry officials.
Copyright Business Recorder, 2025