Govt asks sugar mills to start crushing by 21st

ISLAMABAD: The government has instructed sugar mills to commence sugarcane crushing by November 21 and ensure all payments to growers are settled before the start of the process, or risk having their sugar export licences revoked.

The directive, issued on Thursday by the Sugar Advisory Board, aims to streamline the sugar industry and address longstanding delays in payments to farmers who have faced challenges in receiving their dues in previous years.

Meanwhile, the Pakistan Sugar Mills Association (PSMA) has sought permission to export an additional 500,000 tons of sugar over six months. However, Minister Tanveer Hussain, who chaired the board meeting, clarified that further exports would be allowed once the existing export quota is fully utilised. Federal Minister for Commerce Jam Kamal Khan also attended the meeting alongside Tanveer Hussain.

In recent months, the government has allowed sugar exports of up to a quarter of a million tons. The PSMA further sought government-to-government (G2G) or government-to-business (G2B) facilitation, citing China’s annual import demand of six million tons of sugar.

In the long term, the PSMA proposed completely deregulating the sugar industry by abolishing the Sugar Cane Act and removing sugar from the list of essential commodities, allowing it to operate under a free-market system.

The board reviewed the national sugar stock situation and projections for the upcoming sugarcane crop. According to Minister Tanveer, local sugar prices are currently stable, with a trend of gradual decline. “All mills must begin crushing by November 21,” he said, adding that strict action would be taken against those who do not comply.

Tanveer emphasized that payments to farmers must be completed before crushing begins, warning that mills failing to settle their dues would face severe penalties, including possible loss of export licences.

The meeting underscored the government’s commitment to stabilizing the sugar market and ensuring timely payments to farmers as the crushing season approaches.