The Pakistan Sugar Mills Association (PSMA) has urged the government to swiftly approve the proposed sugar sector deregulation policy, calling it essential for ensuring fair prices for farmers and long-term industry growth. The association said that deregulation would allow sugarcane growers to earn competitive returns while enabling mills to operate efficiently without constant government intervention. It emphasized that such a move would also enhance Pakistan’s position in global sugar markets and help stabilize domestic prices in the long run.
According to the PSMA, sugarcane farmers received improved rates last year mainly because of reduced government control and effective coordination with the provincial administrations of Punjab and Sindh. The association highlighted that greater policy freedom encouraged both growers and millers to cooperate, ensuring timely payments and better production outcomes. However, it warned that continued restrictions on pricing and exports could discourage future cultivation, limit production, and create dependence on costly sugar imports.
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The association stressed that Pakistan’s sugar industry has been operating below its crushing capacity for years, largely due to regulatory constraints that prevent it from functioning as a competitive, market-driven sector. It explained that deregulation would attract more investment, improve productivity, and help the country meet domestic demand without relying on imports. Moreover, by adopting free-market practices, the sugar sector could mirror the success of other deregulated industries, such as rice and maize, which have both achieved strong export growth.
The PSMA pointed out that the government’s earlier decision to abolish sugar mill zoning had slowed the development of the sugarcane crop, reducing incentives for farmers to expand cultivation. It argued that restoring competitiveness through deregulation would not only enhance the profitability of mills but also create a more balanced and transparent system for growers. “When farmers are confident about getting fair returns, they invest more in quality and yield, which strengthens the entire value chain,” the spokesperson added.
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Citing examples from the rice sector, which now contributes nearly USD 4 billion annually to the national exchequer, the PSMA said that similar outcomes are achievable for sugar if the government allows open-market dynamics. It maintained that deregulation would align the interests of both sugarcane farmers and mill owners, promoting cooperation and boosting Pakistan’s economic stability. The association concluded that timely approval of the policy would not only safeguard farmer livelihoods but also position Pakistan’s sugar industry as a strong player in the regional market.