The Sindh government has strongly opposed the immediate deregulation of Pakistan’s sugar sector, raising serious concerns over proposals to abolish crop zoning and allow the establishment of new sugar mills without comprehensive planning. The provincial government believes sudden reforms could negatively affect farmers, destabilize the market, and create long-term food security risks.
Federal-Provincial Differences Over Sugar Reforms
The Sindh cabinet has submitted multiple objections to the draft national sugar policy, arguing that sugar sector regulation largely falls under provincial jurisdiction. Officials warned that immediate liberalisation could disrupt the existing regulatory framework and harm local growers who depend on stable pricing and zoning systems.
Sindh has instead proposed a gradual reform process spread over five to ten years rather than implementing abrupt deregulation measures. This position directly contrasts with the federal government’s commitment to meet the IMF-backed deadline for reforms by the end of June 2026.
The provincial government wants to maintain strong authority over critical areas such as price fixation, licensing, and crop zoning. Sindh also opposes the establishment of new sugar mills, stating that many existing mills are already operating below their full production capacity.
Concerns Over Farmers and Food Security
Experts and farmer representatives have expressed concerns that sudden deregulation may expose growers to exploitation, particularly during periods of excess sugarcane supply when mills can exert greater control over prices. While some farmer groups acknowledge that additional mills could increase competition and benefit growers, they also warn that ending crop zoning entirely could create serious food security challenges.
Sindh has further demanded the authority to independently export sugar while urging the federal government to bear the financial burden of imports during periods of domestic shortages. The province maintains that balanced regulation is essential to protect both consumers and farmers from market volatility.
Pakistan’s Sugar Industry and Economic Importance
Pakistan’s sugar sector represents a major component of the national economy, with an estimated total value chain of around Rs1.1 trillion. The country currently has 79 sugar mills and annual production of approximately 6.13 million tonnes, making Pakistan the world’s seventh-largest sugar producer.
Despite the industry’s scale, farmer representatives criticized policymakers for allegedly finalizing reform proposals without adequate consultation with stakeholders directly linked to the sector.
Sindh Calls for Stronger Regulation Instead of Abolition
Rather than removing existing controls, the Sindh government has recommended strengthening the Sugar Factories Control Act through improved enforcement mechanisms, greater transparency, and wider stakeholder participation. The province also insists on maintaining regulatory duties to protect the local market from subsidized sugar imports that could damage domestic producers.
Additionally, Sindh wants the federal government to share costs related to buffer stock management, agricultural research, and environmental compliance measures linked to the sugar industry.
The ongoing disagreement highlights the broader tensions between federal reform commitments and provincial concerns over agriculture, food security, and economic stability as Pakistan moves toward implementing major policy changes in the sector.