ISLAMABAD – The Pakistan Sugar Mills Association (PSMA) has strongly urged the federal government to deregulate the sugar sector, similar to how provinces have deregulated sugarcane. During its general body meeting on Sunday, PSMA emphasized that sugar is the second-largest industry after agriculture and deserves policy consistency to thrive.
In a detailed statement, PSMA highlighted that the sugar industry generates over Rs1,000 billion in business activity during each crushing season. It also contributes around Rs225 billion in taxes to federal, provincial, and local governments, while supporting retail, transport, and allied sectors. The association added that deregulation would help unlock the full potential of this vital industry.
Moreover, PSMA pointed out that sugar production substitutes imports worth $4 billion annually. It also utilizes bagasse, a byproduct of sugarcane, to generate energy—some of which is already being exported to the national power grid. The millers argued that with better policies, this byproduct could support industries such as steel and ethanol-based fuel production.
The association called for the revival of Pakistan’s Ethanol Blending Policy, which was launched in 2009 but later discontinued. According to PSMA, the current potential of bioethanol is sufficient to replace up to 7% of the country’s gasoline use. Countries like Brazil and India have successfully adopted similar strategies to reduce dependence on imported petroleum products.
Furthermore, PSMA compared the sugar sector to deregulated agro-industries like rice and maize, which operate on free-market principles. These sectors have attracted investment, improved crop yields, and achieved significant export success. PSMA believes deregulating sugar would create similar outcomes by encouraging research, development, and better farming practices.
The millers welcomed the federal government’s recent decision to form a committee to evaluate sugar sector deregulation. They expressed hope that, like other key agriculture industries, the sugar sector would soon be given a permanent policy framework to ensure stable growth, higher exports, and increased economic contribution.