The PSMA called on the government to approve a proposed deregulation policy for the sugar sector early, arguing that this will help sugarcane growers secure better prices for their crops. The statement noted that last year, farmers benefitted from improved sugarcane rates when there was minimal government interference and cooperative efforts from the governments of Punjab and Sindh.
PSMA warned that unless the sugar sector is fully deregulated, the industry itself cannot compete internationally — and inability to compete may discourage cultivation, reduce production and force the country to import sugar, putting extra burden on the national treasury.
It cited the example of other sectors such as rice and maize, where deregulation allowed farmers to receive international‐level rates and contributed significantly to exports (rice sector adding nearly USD 4 billion annually).
For farmers: If deregulation leads to more market‑based pricing, farmers may benefit through higher returns rather than being constrained by regulated price regimes.
For mills & industry: Mills that are operating below capacity may be able to expand and become more competitive internationally with fewer regulatory restrictions.
For the economy: Reduction of government controls could result in increased production, less import‐dependence, and potential export growth.
Risk factors: Deregulation can shift more risk onto farmers and mills — if international competition intensifies, some may struggle to cope without sufficient support mechanisms.
Whether the government formally approves the deregulation policy, and the timeline of its implementation.
How pricing mechanisms for sugarcane and sugar adjust in response to deregulation.
The effect on cultivation levels of sugarcane (whether farmers increase planting if they see better returns).
Impact on domestic production, imports, and export potential of sugar.
