- Authorities to abolish value controls on sugar and sugarcane.
- Restrictions on establishing new sugar mills to be eliminated.
- Zoning restrictions on sugarcane cultivation to be eliminated.
ISLAMABAD: Pakistan has pledged to the Worldwide Financial Fund that it’s going to fully liberalise its sugar business by the top of June 2026, bringing an finish to long-standing state oversight of pricing, output, and commerce, The Information reported on Thursday citing sources.
The transfer goals at hand the whole sugar economic system, from farms to mills and markets, over to market forces, much like current steps taken within the wheat sector. Beneath the plan, the federal government will abolish value controls on sugar and sugarcane, take away restrictions on establishing new sugar mills and raise limits on imports and exports.
A protracted-standing ban on issuing licences for brand new sugar mills may also be withdrawn, opening the sector to recent funding.
Officers stated zoning restrictions on sugarcane cultivation will probably be eliminated, giving farmers full freedom to develop cane wherever they select. The federal government may also finish controls on how sugarcane is used or offered. Farmers will probably be free to promote their crop to any mill of their selection or use it for making jaggery (Gur).
Import duties on sugar will probably be diminished, exports will probably be liberalised and export quotas for sugar mills will probably be scrapped. Mills may also be allowed to import uncooked sugar for processing and re-export, and to freely course of sugarcane or imported uncooked materials with out official approvals.
Most significantly, the federal government will cease fixing sugarcane and sugar costs. As an alternative, costs will probably be set by provide and demand available in the market. The plan additionally bars any formal or casual collusion by business teams to affect ex-mill sugar costs.
The proposed framework clearly states that the federal government is not going to present any subsidy on sugar exports sooner or later. Officers stated this step is supposed to scale back fiscal stress and curb policy-driven market distortions which have usually led to shortages or sudden value hikes.
To guard farmers from losses, the federal government plans to situation a listing of banned sugarcane varieties earlier than every sowing season. These varieties usually have low restoration charges and may harm farmers’ earnings.
