PKI President calls for complete deregulation of sugar sector

Business Recorder reported that Khalid Mahmood Khokhar, president of Pakistan Kissan Ittehad, has called for full deregulation of the sugar sector at a Lahore press conference on Friday. He argued that such a move could build a market-led system able to handle both domestic needs and surplus output. He also asked the government to approve sugar shipments totaling one million tons ahead of the crushing season, which begins November 15.

Khokhar warned that a surplus of about 1.3 million tons could push sugarcane prices down and reduce farmers' income. He noted that another bumper sugarcane crop was on the way, with output expected to rise 10 to 15 percent. He recalled that a delayed export decision in 2017-18 left farmers with an estimated loss of Rs100 billion.

He wants imports, exports, output and prices left to market forces instead of government approvals. He also wants a moratorium on new mills until existing ones reach at least 75 percent utilization. Once new mills are allowed, he proposed a 50-mile minimum gap between them, along with scrapping the Sugar Acts in every province. The Pakistan Economic Survey 2025-26 puts sugarcane at about 0.8 percent of GDP, and FY2025-26 output reached a record 89.45 million tons.