Islamabad: The government has taken a principled decision to deregulate the sugar sector after wheat to fulfill another condition of the IMF, for which a deregulation plan has been prepared and submitted to the Prime Minister for approval.

According to sources, every sector including sugar mill licenses, import and export will be deregulated. Punjab, KP, Balochistan have expressed their willingness to deregulate the sugar sector, while Sindh’s recommendations are yet to be received.

The plan presented by the Ministry of Industries and Production includes a proposal to form a regulatory authority to protect farmers and prevent cartels. Farmers will have complete freedom to cultivate sugarcane, there will be no restrictions on any zone or variety, farmers will be free to sell sugarcane to any sugar mill or make jaggery.

The market will determine the price of sugarcane, sugar mills that have been closed for eight months will be able to import raw materials from abroad and make sugar. The government will not give any subsidy on sugar export. The ban on setting up new sugar mills in the country will also be lifted.

It is proposed to issue a list of prohibited sugarcane varieties before sowing to prevent losses to farmers. Sugar mills will be allowed to import raw materials from outside and produce sugar and export it.