Pakistan is moving forward with a step toward fulfilling condition of the International Monetary Fund (IMF) by deregulating its sugar sector, a reform the government aims to complete by June 2026, according to the media reports.
The federal government has finalized a draft policy to deregulate the sugar industry as disclosed by a senior official from the Ministry of National Food Security and Research (MNFS&R) during a parliamentary briefing.
While addressing the National Assembly Standing Committee on National Food Security and Research, the official explained that the deregulation plan was developed by a high-level committee established by the prime minister. The meeting was chaired by MNA Syed Hussain Tariq.
The proposed policy includes changes to sugarcane-related laws, and it will lift the longstanding ban on establishing new sugar mills. However, the Sugar Advisory Board (SAB) will remain in place to safeguard the interests of sugarcane growers. A meeting of the SAB is expected soon to address issues concerning the ongoing sugarcane crushing season.
Committee Chairman Syed Hussain Tariq highlighted that the current price of sugarcane stands at around Rs400 per maund, noting that mills had briefly raised the rate to Rs471 per maund before lowering it after the harvest began. Another MNFS&R official informed the committee that 11 million tons of sugarcane have been crushed so far, producing roughly 900,000 tons of sugar.
Tariq expressed concern over the slow pace of crushing, with only 12 percent of the work completed so far compared to the previous year. He warned that delays in crushing, especially toward the end of December, could severely affect farmers, as sugarcane loses weight in January. He also questioned who would compensate growers for such losses and stressed the need for a clear framework to regulate sugarcane prices.
The committee emphasized that while it is important to meet IMF conditions, protecting the sugarcane sector is equally critical. Members voiced serious concerns about the delay in the SABтАЩs first meeting despite the approaching end of the crushing season. The panel also called on the government to formally announce the crushing season to prevent potential manipulation and monopolistic practices by sugar mills.
Committee members were also informed that the minimum support price for sugarcane has not been set for the past two years due to the IMFтАЩs policy of zero market intervention. MNA Rana Muhammad Hayat Khan accused the sugar industry of exploiting growers and called for stricter action, while MNA Zulfiqar Ali Behan suggested allowing farmers to produce raw sugar, alleging that the SAB had failed to protect their interests.
