Punjab Pushes Sugar Mills to Start Crushing as Centre Plans Full Deregulation

Sugar mills in Punjab have begun restarting operations under pressure from the provincial government, even as the federal authorities finalize a plan to fully deregulate the sugar sector. The twin developments mark one of the most significant shifts in Pakistan’s sugar market in years, affecting farmers, millers, and consumers alike. According to the Punjab chief minister’s special assistant on price control, twenty-seven out of forty-one mills had resumed crushing by the weekend after the provincial administration insisted that operations begin by November 15 to stabilize supply and prices. The government has warned mills that continue to delay crushing, calling the early start essential to avoid market shortages. However, the drive encountered legal pushback after the Lahore High Court issued a stay order, temporarily preventing the government from taking coercive action against a group of mills. Fifteen members of the Pakistan Sugar Mills Association have challenged the provincial directive, claiming it does not reflect the ground realities facing the industry. A senior association official said that only mills that did not approach the court are facing action, while those under the stay order are protected until the next hearing. While Punjab presses ahead with regulatory enforcement, the federal government is preparing for a major policy shift. A special committee led by Federal Minister Owais Leghari has completed recommendations for the complete deregulation of the sugar sector, which will be presented to Prime Minister Shehbaz Sharif in the coming days. The Ministry of Food Security said the federal plan includes lifting restrictions on setting up new mills, ending the import and export quota system, and allowing market forces to determine sugar prices. If approved, the move would represent a major departure from decades of state controls. Leaders within the sugar industry have welcomed the federal proposals. PSMA’s Zaka Ashraf called deregulation a “very positive step,” saying it would allow the sector to compete internationally and provide farmers with better returns due to potential export opportunities. A veteran mill owner confirmed that several rounds of high-level meetings had taken place over the past six months, signalling serious momentum behind the reforms. Another CEO said the abolition of the Sugar Factories Control Act of 1950 was long overdue. A prominent dealer with farming experience also noted that although farmers may initially struggle to adjust to a more open market, modern cultivation techniques will eventually lead to higher yields, lower production costs, and more competitive sugar prices. He added that deregulation could attract more private investment in agricultural research and improve long-term sector performance.