Govt Moves to Deregulate Sugar Sector, Lifts Ban on New Mills
ISLAMABAD: Amid soaring sugar prices, the government announced steps toward deregulating the sugar industry and lifting a longstanding ban on licences for new mills.
Food Security Minister Rana Tanveer Hussain said prices had begun stabilizing in Islamabad at Rs172-173 per kg, though some remote areas still reported rates near Rs195. He attributed the recent hike to a few mills halting supplies and retailers hoarding stock, adding that the market was expected to normalize this week.
The minister defended last year’s sugar exports, citing a surplus of 7.6 million tons, though production fell to 5.8 million tons this year due to climate impacts. Exports were halted in January 2025.
A high-level committee, led by Power Minister Sardar Awais Leghari, has been tasked with finalizing a deregulation plan within 30 days to promote competition and increase production to 10 million tons.
Hussain said deregulation would also benefit growers, noting sugarcane prices nearly doubled last season. He stressed the government’s goal was to boost efficiency and exports while ensuring stable domestic prices.
