A policy document issued by the Institute of Cost and Management Accountants of Pakistan (ICMA) has proposed the establishment of a centralised sugar market monitoring system to track production, stock levels, and prices across the supply chain, with the aim of improving transparency and enabling timely policy interventions, according to the media reports.
The document points out that the lack of a unified and reliable data system has long been a major weakness in the management of Pakistan’s sugar sector. It notes that information on production, inventories, sales, and pricing is currently dispersed among various agencies and market players, restricting the government’s ability to accurately and promptly assess market conditions.
Under the proposal, data from sugar mills, major traders, and relevant government departments would be consolidated into a single platform. ICMA says this would allow authorities to monitor production and stock trends in real time or near real time, instead of depending on periodic surveys or ad hoc reporting.
The report explains that within the existing framework, data gaps often come to light only after prices begin to rise or shortages are reported. By then, corrective actions such as imports, price controls, or enforcement measures are often delayed, reducing their impact and adding to market uncertainty.
According to ICMA, a centralised monitoring system would enable more informed decision-making by offering a continuous national-level picture of sugar availability. This would include tracking sugarcane crushing volumes, recovery rates, mill-wise output, and the movement of stocks throughout the supply chain.
The document emphasises that reliable stock data is essential for evaluating claims of shortages. In the absence of verified information, policymakers often face pressure to permit imports or curb exports based on incomplete or contradictory reports. A centralised system, ICMA says, would help differentiate between genuine supply shortages and artificial scarcity.
ICMA further notes that the collection of price data through the system would help regulators detect unusual price movements and examine their underlying causes. Such transparency, the report says, would strengthen competition enforcement by identifying patterns that merit closer review.
The report also highlights that the proposed platform would improve coordination between federal and provincial authorities. As sugar sector regulation spans multiple jurisdictions, inconsistent data has frequently hindered policy alignment. A shared and verified data system would help ensure that decisions on pricing, trade, and enforcement are made on the basis of common information.
According to ICMA, the monitoring system would be particularly important during a transition toward sugar market deregulation. As direct price controls are eased, the document notes, data-driven oversight becomes critical for maintaining market stability and responding to emerging risks.
The report adds that international experience shows commodity markets operate more smoothly when regulators have access to timely and accurate data. Without such systems, ICMA warns, deregulated markets can become susceptible to manipulation, misinformation, and delayed responses.
The study stresses that the success of the proposed system would depend on mandatory participation, standardised reporting formats, and effective enforcement to ensure data accuracy. Voluntary or partial reporting, the document notes, would be insufficient to achieve comprehensive market visibility.
ICMA concludes that the creation of a centralised sugar market monitoring system is a vital institutional reform that would enhance transparency, improve information flow, support more predictable policymaking, strengthen oversight, and contribute to a more stable and accountable sugar market.
