Pakistan : Sugar prices may drop as Punjab mills start new crushing season
Punjab sugar mills have started crushing, expected to reduce sugar prices by up to Rs10/kg due to improved supply. Authorities are increasing monitoring to prevent black-marketing. The federal government plans to deregulate the sugar industry, ending price controls, allowing new mills and free trade, shifting pricing fully to market dynamics based on supply and demand.
LAHORE: Sugar prices in Punjab are expected to decrease as all sugar mills across the province have commenced crushing for the new season, sources from the Cane Commissioner’s office said. The improved market supply could lead to a reduction of up to Rs10 per kilogram in retail sugar prices.
Officials noted that district administrations will need to strengthen monitoring to ensure smooth operations. The start of crushing is also expected to curb black-market sales and prevent any artificially created shortages.
Earlier this week, it was reported that the federal government plans to end its 77-year control over sugar prices by deregulating the industry. A formal summary proposing deregulation has been prepared and is expected to be presented to the Prime Minister later this week, with Federal Minister for National Food Security Rana Tanveer Hussain briefing him on the matter.
Under the deregulation plan, the government would lift the ban on establishing new sugar mills, allowing private investors to set up units in an open-market framework. Additionally, authorities would relinquish control over sugar import and export, and the official mechanism for fixing prices would be abolished.
If approved, the move would transition Pakistan’s sugar sector into a fully market-driven industry, where retail and wholesale prices are determined solely by supply and demand
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Source : Daily Times
