Punjab Sugar Output May Ease Market Prices
Sugar prices in Pakistan are expected to ease as all sugar mills in Punjab have begun crushing for the new season, improving supplies across the province.
Officials in the Cane Commissioner’s office say the increased availability of sugar in the market may lead to a reduction of up to Rs10 per kilogram in retail rates.
Authorities have advised district administrations to strengthen their monitoring efforts to ensure the steady flow of sugar and prevent any attempts to manipulate prices.
They believe that the start of crushing will help curb black-market activity and block efforts to create an artificial shortage.
The development comes as the federal government considers a major policy shift in the sugar industry.
Read More: Sugar Sector Set for Major Overhaul Under New Policy
Earlier this week, it emerged that Islamabad is preparing to end its 77-year control over sugar prices by deregulating the entire sector.
A formal summary proposing deregulation is expected to be submitted to the Prime Minister later this week.
Federal Minister for National Food Security Rana Tanveer Hussain is due to brief the Prime Minister on the plan, according to officials familiar with the matter.
Under the proposal, the government would lift the longstanding ban on the establishment of new sugar mills, allowing private investors to set up new units under an open-market system.
The plan also recommends withdrawing state authority over sugar imports and exports, shifting these decisions entirely to market participants.
