Govt plans to de-regularize sugar industry

KARACHI: A plan for the complete deregulation of the sugar industry in Pakistan has been finalised and is ready for the presentation it will receive from the prime minister very soon.

Talking about the sugar situation in the country, the National Assembly Standing Committee on National Food Security is ‘seriously concerned about the considerable delay in the sugarcane crushing season,’ along with ‘fluctuations in sugar prices.’

Issues considered by the committee included the current crushing season and the proposed framework of deregulation in the sugar industry. Syed Hussain Tariq, Chairman of the committee, mentioned that prices of sugarcane have been significantly reduced following the start of harvesting operations, when prices stood at around Rs. 470 per maund.

The Ministry of Food Security government officials stated that the deregulation proposal is in its final stages. The committee, under Awais Leghari, has had eight sessions where it formulated a proposal, which will then be submitted to the prime minister.

Through the new proposal, the sugar industry will run without government intervention, although the Sugar Advisory Board will still safeguard the sugar producer’s interests. The Sugar Advisory Board meeting is scheduled for next week.

Until now, a total of up to 11 million tons of sugar cane have been crushed. The authorities confirmed that some sugar mills in Sindh have yet to submit their crushing status. Syed Hussain Tariq further added, “Only 12 percent of crushing has been done by mid-December, and from next month, the weight of sugar cane will decrease.”

The chairman blamed sugar mills for first increasing their prices so as to induce farmers to harvest, and then cutting the pace of their production so as to reduce prices.

However, Punjab’s Food Secretary announced that “all sugar mills are running at their full capacity and engaged in sugarcane crushing.”

The complete deregulation of the sugar industry will ensure the stabilization of prices, facilitate payments to the growers, and enable the operation of sugar mills without any restrictions.