Pakistan considers deregulating sugar industry amid rising prices

Friday, 11 April 2025 00:22 - - {{hitsCtrl.values.hits}}

Islamabad: AMID rising sugar prices and renewed concerns about price manipulation by sugar mills, the Government is weighing the possibility of allowing the sugar industry greater freedom in setting prices and managing exports and imports, reports The Express Tribune.

This potential shift comes after a similar move in the wheat sector, where deregulation of supply left many farmers vulnerable to exploitation by middlemen. In Punjab, wheat growers have raised concerns about being forced to sell at low prices, leading some to consider abandoning the crop altogether—a change that could threaten food security nationwide.

Sources said that the country’s economic managers have asked the Ministry of National Food Security and Research to conduct a full analysis of the sugar industry to determine if deregulation would benefit the sector and consumers.

In a recent meeting of the Economic Coordination Committee (ECC), officials discussed issues related to sugarcane production, crop zoning, water use, storage, and trade. Some members of the committee recommended a complete deregulation of the sugar sector rather than implementing fragmented reforms, warning that partial changes could create more problems than they solve.

The committee also called on the food ministry to assess the effects of deregulation on sugar supply and storage and to provide a detailed report for review.

Currently, high sugar prices continue to burden consumers, a situation attributed to the dominance of sugar millers in the market. The Competition Commission of Pakistan (CCP) is closely monitoring the industry, aiming to ensure fair practices.