On 17 July 2025, Prime Minister Shehbaz Sharif announced the formation of a high-level committee to deregulate Pakistan’s sugar sector, tasked with reviewing rules on production, pricing, and trade. Led by the Minister of Energy and including heavyweights like the Finance Minister, it promises “practicable proposals” for reform and privatisation within 30 days. Sounds promising, doesn’t it? But if you’re expecting real change, hold your breath at your own risk.
This isn’t the first time the government has dangled the carrot of reform. In 2020, the Pakistan Tehreek-e-Insaf government released a scathing report exposing sugar barons’ misdeeds, promising action. In 2021, a Reforms Committee pushed for deregulation, including scrapping indicative sugarcane prices by 2023. Last year, Punjab took a half-step toward deregulation, hailed by the Pakistan Sugar Mills Association, only for the federal government to drag its feet. Each time, committees convene, reports are filed, and the sugar cartel—controlled by politically connected families—emerges unscathed. This latest panel feels like another act in the same tired charade, a performance to appease critics while the elite keep raking in billions.
In Pakistan, sugar isn’t just a commodity—it’s a symbol of power, privilege, and political manipulation. Behind the sweetness lies a bitter reality: the sugar industry is dominated by a handful of politically connected families who control the mills, influence prices, and shape state policies to their advantage. These sugar barons—names like the Sharifs, Zardaris, and Tareens—have transformed a national necessity into a lucrative enterprise, often at the expense of farmers and consumers. The government, far from being a neutral regulator, frequently enables this system through subsidies, protectionism, and lax oversight.
Sugar prices have surged, hitting PKR 160 per kg in retail markets by mid-2024, compared to a global average of PKR 80–90 per kg
The Owners: A Club of Elites
Pakistan’s sugar mills are largely controlled by a small group of influential families with deep political ties, rather than anonymous corporations. Key players include:
JDW Group, led by Jehangir Khan Tareen, operates several mills, with three major units under its banner.
Omni Group, linked to the Zardari family and the Pakistan Peoples Party (PPP), is a dominant force in Sindh, controlling over a dozen mills.
Sharif Family, associated with the Pakistan Muslim League-Nawaz (PML-N), owns multiple mills, including Ramzan Sugar Mills.
Almoiz Group and others like the Chaudhry family also hold significant shares of the industry.
As of 2023, Pakistan had 91 operational sugar mills, with over 40% concentrated in the hands of these politically connected groups. This concentration is reinforced by restrictive policies—since 2003, Punjab has banned new sugar mill licences, though existing players expand through loopholes like establishing “branches” in other provinces.
The Pakistan Sugar Mills Association (PSMA) serves as their lobbying arm, advocating for policies that protect their interests. A notable example of their influence is the 2010 Competition Commission of Pakistan (CCP) probe into price-fixing, which imposed a PKR 44 billion fine. The investigation was undermined by legal challenges and political pressure, leaving the cartel largely unscathed.
Policies: A Buffet of Favours
Government policies consistently favour mill owners, ensuring their profitability while passing costs onto farmers and consumers.
Export Subsidies: Cash for Cronies
Between 2015 and 2018, the government provided approximately PKR 25 billion in export subsidies to clear surplus stocks. In 2018, a subsidy of PKR 5.35 per kg was granted to export 2 million tonnes, despite domestic shortages driving prices up. More recently, in 2023, an additional PKR 15 billion was approved to export 250,000 tonnes. These subsidies allow mills to profit abroad while manipulating local supply, with sugar prices peaking at PKR 150–160 per kg in 2024.
Trade Barriers: No Competition Allowed
High tariffs (up to 40% in recent years) and periodic import bans shield local mills from cheaper foreign sugar. For comparison, Brazil’s sugar costs around PKR 60–70 per kg on the global market, while Pakistan’s domestic price often exceeds PKR 140 per kg. This protectionism ensures mills face no real competition, keeping prices artificially high.
Price Controls: A Charade
The government sets a minimum sugarcane price (e.g., PKR 400 per 40 kg in Punjab for 2023–24) to support farmers. However, mills frequently delay payments—owed arrears reached PKR 20 billion in 2022—and manipulate weights to underpay growers. Meanwhile, ex-mill sugar price caps (e.g., PKR 90 per kg in 2023) are routinely ignored during shortages, with mills citing “market dynamics.”
By-Products: Bonus Bucks
Mills generate significant revenue from by-products like bagasse (used for power generation) and molasses (exported as ethanol). In 2022, molasses exports alone earned PKR 35 billion. State-subsidised energy projects often benefit mills, amplifying their profits without additional investment.
Cheap Credit: Loans for the Connected
Mill owners with political clout access low-interest loans from the State Bank of Pakistan and commercial banks. Historical loan write-offs, like the PKR 100 billion forgiven in the 1990s and early 2000s, set a precedent. In 2021, a PKR 70 billion loan package was extended to the industry, with repayment enforcement remaining lax.
The Fallout: Farmers Bleed, Consumers Pay
The sugar industry’s structure creates widespread economic and social harm.
Farmers: Crushed Under the Weight
Sugarcane growers face systemic exploitation. Laws prohibit them from producing gur (brown sugar), forcing sales to mills at dictated rates. Delayed payments and underreported yields are rampant—mills owed farmers PKR 15–20 billion annually in recent years. Enforcement remains weak, leaving growers vulnerable.
Consumers: Paying for the Privilege
Sugar prices have surged, hitting PKR 160 per kg in retail markets by mid-2024, compared to a global average of PKR 80–90 per kg. Recently, they hit PKR 200 per kg. Pakistanis, who consume 25 kg of sugar per capita annually (above the global average), bear the brunt of this inflation, driven by hoarding and export incentives.
Environment: A Silent Victim
Sugarcane’s water-intensive nature—requiring 1,500–2,000 litres per kg of sugar—strains Pakistan’s scarce resources. Its expansion has displaced cotton, reducing exports by USD 1.4 billion annually since 2018. Mill effluents also pollute waterways, though regulatory oversight is minimal.
The Fix: Deregulate or Die
Pakistan’s sugar industry thrives on state-backed distortions that enrich a few while harming many. Deregulation, removing subsidies, lifting import restrictions, and enforcing transparency could level the playing field. The CCP has advocated this since 2010, but political will remains absent, as mill owners double as lawmakers. Without reform, the cartel will persist, and farmers and consumers will continue to pay the price.