Sugar Millers urge govt to deregulate sugar sector

Pakistan Sugar Mills Association has urged the government to adopt a consistent policy regarding deregulation of sugar sector, statement says to deregulate sugar sector, reported 24NewsHDTV Channel. 

During general body meeting of Pakistan Sugar Mills Association convened on Sunday, the government was told that sugar was the second biggest industry after the agriculture therefore it was need of the that this sector should be deregulated. 

In a statement, a spokesman of PSMA said that the Association requests the federal government to consider deregulation of the sugar sector as has been done by the provinces in the case of sugarcane.

Sugar industry is 2nd largest agro-based industry in Pakistan after textiles. During a crushing season, it generates direct and indirect business activity of 1000 billion in agriculture, transport, allied industry, whole sale and retail markets. It pays around Rs.225 billion in direct and indirect taxes to Federal, Provincial and Local Governments and provides 4 billion US Dollar worth of import substitution to our national economy.

Sugar industry utilizes its indigenous energy by using bagasse through which an allied steel industry has also been established and generated power is being exported to national grid as well. With conducive policy interventions an industrial chain using byproducts of sugarcane would come up, as happened in many other countries. Use of Ethanol in vehicles as fuel like Brazil and India can strengthen our national energy mix heavily dependent on imports of petroleum products. Ethanol Blending Policy formulated in Pakistan in year 2009, later discontinued, needs to be revived. The current potential of bioethanol is enough to replace 7% of total gasoline consumption in the country. 

Two very important agro based sectors i.e. Rice and Maize are deregulated sectors and only rice exports are fetching nearly 5 billion dollars after that. There is no restriction on import and export of Rice as well as Maize in Pakistan. Both sectors work on the principles of free economy and are working well. Rice and Maize growers get International prices which has encouraged investments in Research and Development activities resulting in better yield. Scanty efforts have been made in Pakistan to develop new varieties of sugarcane for improving yield and sucrose recovery. 

Government should adopt a permanent policy on deregulation of sugar sector so that it keeps contributing to our national economy through import substitution, generating overall business activity, employment, tax revenue and substantial foreign exchange earnings due to regular export of sugar surplus.

The sugar industry has pleaded deregulation in several meetings with the government and also in the last Sugar Advisory Board meeting held on July 17 2025. Formation of a committee by the Federal Government on deregulation of sugar sector is a welcoming step and it is hoped that like other agricultural sectors, the sugar sector will be given the opportunity to utilize its full potential for the sake of national development.