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Food supply

High-Level Committee Formed to Deregulate Pakistan's Sugar Sector

Strategic Insights

— 1 min read

Prime Minister Shehbaz Sharif has convened a high-level committee to regulate the sugar sector, amid significant price hikes and market instability. The committee will be led by the Minister of Energy, with the Secretary of Industries and Production as the convener, to suggest practical reforms for deregulation and privatization of the sugar industry. The committee's Terms of Reference (TORs) outline a comprehensive review of existing federal and provincial laws, policies, and rules related to sugar production, imports, exports, pricing, subsidies, and hoarding. The committee's goal is to create a balanced structure for both producers and consumers, considering the interests of farmers, consumers' rights, local demand, and international trade requirements.

Key Takeaways:

  • The committee will review all current federal and provincial laws, policies, and rules related to sugar production, imports, exports, pricing, subsidies, and hoarding.
  • The committee will prepare policy suggestions focusing on accurate data collection regarding grain stocks, supply, and pricing.
  • The committee will consider the interests of farmers, consumers' rights, local demand, and international trade requirements.
  • The committee will consult with industrialists, farmers, and regulatory bodies to ensure transparency and input from key stakeholders.
  • The committee is expected to submit its final report to the Prime Minister within 30 days.
  • The government aims to act quickly to stabilize the sugar market, which has seen significant price hikes recently.

Statistics:

  • Sugar prices exceeded Rs200 per kilogram, causing talks between the government and Pakistan Sugar Mills Association to end without agreement.
  • The Sugar Advisory Board approved the export of 500,000 tons of sugar last month.
  • The government stopped exports due to the IMF's refusal to allow tax exemptions.
  • The ex-mill price was fixed at Rs165 per kilogram earlier between the government and Pakistan Sugar Mills Association.

Sources:

  • Dawn News
  • Pakistan Sugar Mills Association
  • Pakistan Ministry of Industries and Production

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