The federal government has finalized a new national sugar policy aimed at ending long-standing political control over prices, production, and sales.
According to the draft National DeRegulation Policy, the move is designed to improve market efficiency, enhance competition, and protect consumer and farmer interests. The policy also fulfills an important benchmark agreed with the International Monetary Fund regarding the removal of formal and informal price controls across the sugar value chain.
A key part of the reform is the proposed end to the zoning policy, which historically controlled where farmers could sell sugarcane and limited the establishment and expansion of sugar mills. Officials said these restrictions have long been used to benefit a small number of influential mill owners while limiting growers’ freedom.
Under the new framework, farmers will be allowed to sell their crop to any buyer, including mills and private purchasers, enabling better price discovery and improved market returns. The policy also proposes third-party weighing, easier access to credit, and mechanization support to improve transparency and boost farm incomes.
The government has also proposed ending the politically controlled structure of sugar imports and exports, with a gradual move toward full liberalization from November 2026 onward. Domestic consumption needs will be assessed annually, while production verification will be supported through a track-and-trace system.
Pakistan currently produces around 6.13 million tonnes of refined sugar annually, making it the world’s seventh largest producer, with 79 sugar mills operating across the country.
