Sugar sector deregulation: farmers to gain freedom in cultivation and sales

ISLAMABAD: The federal government has taken a principled decision to deregulate the country’s sugar sector to meet another condition of the International Monetary Fund (IMF) and has prepared a comprehensive plan for the purpose.

Sources said that the proposed plan would give farmers full freedom to cultivate sugarcane. It includes lifting subsidies on sugar exports, removing restrictions on establishing new sugar mills, and ending export and import bans on sugar.

According to sources, after deregulating the wheat sector, the government now intends to hand over the sugar sector to market forces, for which a detailed deregulation plan has been prepared.

Under the proposed plan, farmers will not be restricted by sugarcane variety or geographic zones.

They will have the freedom to sell sugarcane to any sugar mill or produce jaggery, while market forces — rather than the government — will determine sugarcane prices.

The plan also recommends ending export subsidies on sugar, lifting the ban on establishing new sugar mills, and removing export quotas for existing mills.

Mills will be allowed to import raw sugar for re-export, and they will have full autonomy in processing both local sugarcane and imported raw materials.

The government committee has recommended ending restrictions on sugar imports and exports. To protect farmers from losses, it is suggested that a list of prohibited sugarcane varieties be issued before sowing.

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