Millers begin quoting sugarcane prices amid government's market-driven approach

Pakistan's provincial governments have refrained from intervening in the sugarcane pricing, allowing market forces to determine prices, in line with IMF's guidance.

However, sugar millers have started quoting purchase prices for the current season. JDW Sugar Mill has offered a price of PKR 400 per 40 KG of sugarcane, which is PKR 25 less than last season's government-set price.

Growers argue that due to higher input costs, especially for fertilizers, sugar millers should buy sugarcane at a minimum of PKR 500 per 40 KG.

Industry sources report that as of October 31, there were 1.2 million tons of sugar in stock, and the government has permitted the export of 5 million tons.

Sugar exporters are selling sugar at PKR 135 per KG to buyers in Afghanistan, Africa, and Central Asia.

Sugarcane growers told Nukta that if the government is not setting sugarcane prices, it should also avoid fixing sugar prices and lifting inter-district bans on sugarcane movement, allowing farmers to sell to any buyer freely.

This year, millers expect to produce 6.5 million tons of sugar. Currently, sugar is sold at up to PKR 150 per KG in the local market. The crushing season is anticipated to begin by the end of November, with most mills already starting to fire up their boilers.