The government has decided to fully exit the Sugar Sector as part of reforms linked to its agreement with the International Monetary Fund (IMF). The move marks a major shift in policy and aims to end long-standing state control.
After wheat, sugar is now set for complete deregulation. A detailed reform plan prepared by a government committee outlines the changes. The document was obtained by Samaa TV and highlights wide-ranging measures.
The reforms are part of structural conditions under Pakistan’s IMF programme. Officials say the goal is to reduce government intervention and allow market forces to operate freely.
Freedom for farmers
Under the proposed plan, farmers will get full freedom to grow sugarcane. There will be no restrictions on cultivation areas. Limits on sugarcane varieties will also be removed.
Farmers will be free to sell sugarcane to any sugar mill. They can also use their produce to make jaggery. No government approval will be required.
This change is expected to give farmers more control over their income. It will allow them to respond directly to market demand.
End of price controls
The government will no longer set sugarcane prices. The minimum support price system will be abolished. Prices will be decided by demand and supply.
Officials say this will end market distortions. It is seen as a major change in agricultural pricing policy.
The reform plan also recommends ending all subsidies on sugar exports. Export quotas placed on sugar mills will be removed.
The ban on sugar imports and exports will also be lifted. This will allow free trade in the commodity.
Major changes for mills
The plan proposes lifting the ban on establishing new sugar mills. Mills that remained closed for up to eight months will be allowed to import raw materials.
Sugar mills will be free to process local sugarcane or imported raw sugar. They will also be allowed to import raw sugar, refine it, and re-export it.
This step is expected to improve capacity use. It may also help increase exports and investment in the Sugar Sector.
Sugar prices in the local market will no longer be fixed by the government. Market forces will determine retail prices.
Safeguards for farmers
To protect farmers, limited safeguards are included. Authorities will issue a list of banned sugarcane varieties before sowing season.
This aims to stop cultivation of low-quality or unsuitable crops. Officials say it will reduce farmer losses.
The reforms signal a shift toward a market-driven economy. By exiting the Sugar Sector, the government aims to cut fiscal costs and meet IMF commitments.
In other related news also read Sugar Prices Down As Crackdown Intensifies
If approved, the plan will reshape Pakistan’s sugar industry and change how the market operates nationwide.
