Pakistan to Deregulate Sugar Industry Amid Rising Prices

Strategic Insights -

A surge in sugar prices has led to growing public frustration, prompting the government to take steps to address the issue. Minister for Food Security and Research, Rana Tanveer Hussain, announced plans to deregulate the sugar industry and lift a long-standing ban on new sugar mill licenses. The government expects the market to stabilize by the end of this week, with prices already stabilizing in parts of Islamabad at Rs172-173 per kilogram. However, remote areas continue to see prices of up to Rs195.

Key Takeaways:

  • The government plans to deregulate the sugar industry to foster competition and increase production from 5.8 million tons to 10 million tons.
  • A high-level committee, led by Power Minister Sardar Awais Leghari, will propose a deregulation plan within 30 days.
  • The deregulation plan aims to allow Pakistan to export surplus sugar without impacting domestic prices.
  • The government will lift the long-standing ban on new sugar mill licences.
  • Sugarcane growers are expected to benefit from deregulation, with the price of sugarcane nearly doubling last season from Rs350 to Rs700 per 40 kg.
  • The government's focus remains on ensuring sugarcane production and avoiding sugar imports.

Statistics:

  • Current sugar production stands at 5.8 million tons.
  • The government aims to increase production to 10 million tons through deregulation.
  • Sugarcane production dropped to Rs350 per 40 kg last season, compared to Rs700 per 40 kg.
  • The price of sugar has stabilized in parts of Islamabad at Rs172-173 per kilogram.

Sources:

  • "Pakistan to deregulate sugar industry amid rising prices" - Dawn (no date)
  • "Government sets 30-day target for deregulation plan to boost sugar production" - The News International (no date)

Note: Since the source articles do not provide a specific date, there is no date listed for the sources.