LAHORE: The Punjab government and the Punjab Sugar Mills Association (PSMA) have reached an agreement on sugar pricing and distribution after a meeting of the provincial Sugar Coordination Committee. The decision aims to end disputes between the two sides and ensure smooth supply in the province.
According to reports, under the arrangement, 10,000 metric tonnes of sugar purchased before August 14 at the ex-mill rate will be given to dealers at Rs165 per kilogram. Earlier, sugar mills had demanded a Rs2 per kg increase in the ex-mill price, but the provincial government rejected the proposal.
Under the new distribution plan, sugar mills will sell 40 percent of their production to the corporate sector, 30 percent to registered dealers, and 30 percent through deputy commissioners.
Officials said this step is meant to improve supply, bring transparency, and stop tax leakages. Previously, sugar supplied through dealers would directly reach the retail market, allowing mills to avoid a five percent sales tax. The new mechanism will make it compulsory for mills to sell only through approved dealers.
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The committee also discussed inter-provincial supply. Punjab has decided that sugar will not be sent to other provinces unless a formal request comes from the federal government.
However, officials assured that in case of emergencies — especially in Khyber Pakhtunkhwa (K-P), where recent floods have caused major human and financial losses — Punjab will allow supply to prevent shortages.
Officials further noted that K-P currently has four sugar mills, while Sindh runs 24 mills that also meet Balochistan’s needs. They said Punjab’s cautious policy is aimed at protecting its own requirements while also keeping in mind possible shortages in other provinces.
The meeting concluded with a decision that the points agreed upon would be formally signed by representatives of the Punjab government and the PSMA, giving legal cover to the consensus.
