The Pakistan Sugar Mills Association (PSMA) has urged the government to approve the policy for deregulation of the sugar sector without delay, in order to ensure that sugarcane growers receive fair and profitable prices for their crops.
According to a PSMA spokesperson, sugarcane farmers received better prices last year because the government did not intervene in the market, while effective cooperation between the sugar industry and the Punjab and Sindh governments further facilitated the process.
The spokesperson noted that sugar mills in Pakistan have consistently operated below their crushing capacity. They emphasized that until the sugar industry is fully deregulated, it will not be able to compete internationally, and farmers will be unable to earn global market-based prices. As a result, sugarcane cultivation could decline, potentially leading to increased sugar imports — placing an additional burden on the national exchequer.
He added that after the abolition of specific sugar mill zones, the growth of sugarcane cultivation has slowed. In contrast, crops like rice and maize have already been deregulated and now operate successfully under open market mechanisms. For instance, following the deregulation of the rice sector, Pakistan’s rice exports have grown to around USD 4 billion annually, contributing significantly to the national economy.
The PSMA stressed that deregulation of the sugar sector is in the national interest. It would foster better coordination between farmers and the industry, ultimately boosting Pakistan’s overall economic growth.
