The government has decided to deregulate the sugar sector to ensure prompt payments to growers and transparency in the weighment process.
The committee was formed to discuss proposals for deregulating Pakistan’s sugar sector on 17 July 2025 under the chair of Minister for Power including Ministers for Finance, National Food Security and Research, EAD respectively, SAPM for Industries, and Provincial Chief Secretaries and other stakeholders as members.
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The committee has, so far, held seven (07) meetings between 29th July and 14th October 2025 with stakeholders to firm up proposals on the form, extent and depth of deregulation.
After the meeting with sugarcane growers’ association, it was collectively acknowledged that any move towards deregulation must be supported by a strong regulatory framework to ensure prompt payments to growers and transparency in the weighment process. Additionally, it was underscored that Provincial Governments must issue timely and clear notifications regarding non-approved sugarcane varieties prior to the commencement of the sowing season.
The committee has proposed different deregulation measures for sector which were agreed with consensus.
Input Stage
Freedom of choice for farmers to grow sugarcane has been given and there will be no restrictions relating to permitted zone or recommended crop variety.
Freedom for farmers has been agreed to sell and they will be free to sell to any mill of their choice or for alternate process for value addition such as jaggery.
Sugarcane price has been recommended to be determined by market and no indicative minimum price will be fixed by government.
Prior intimation of banned sugarcane varieties will be ensured and a negative list will be published well before the sowing season to avoid loss
Processing Stage
At processing stage, there will be no restrictions on establishing new mills which will have freedom to choose raw material for processing. Sugar mills have been allowed to choose any raw material for processing such as sugarcane, beet, corn and raw sugar.
Sugar mills will be free to produce any blend of sugar or ethanol depending on market price and demand. There will be no price fixation for sugar and has been left to the market
Trade Stage
The government will remove ban on export of sugar and products such as jaggery and remove and minimize tariff restrictions on import of sugar. There will be no restrictions on import of sugar and raw materials including raw sugar for refining. The government will not give subsidies for export.
During the last meeting, representatives of the provincial governments informed that they had already initiated the process for seeking approval on the proposed reforms from their respective Cabinets. It was decided that a follow-up meeting will be convened after getting response from the provincial governments.
