LAHORE: The Punjab government and Punjab Sugar Mills Association (PSMA) have agreed on a comprehensive supply framework during a joint meeting of the provincial Sugar Coordination Committee, settling disputes over pricing and distribution of the commodity.
Official sources told The News that according to the arrangement, 10,000 metric tonnes of sugar purchased prior to August 14 at the ex-mill rate will be provided to dealers at Rs165 per kilogram. The mills had earlier demanded a Rs2/kg increase in the ex-mill rate, but the provincial government declined to endorse the request.
Under the agreed distribution plan, sugar mills will sell 40 per cent of their output to the corporate sector, 30 per cent through their registered dealers, and 30 per cent via deputy commissioners. The step aims to streamline sales and curb tax leakages. Sources told The News that previously, mills routed sugar through dealers but supplies directly landed in the retail market, allowing mills to save on the five percent sales tax exemption. The new mechanism obliges mills to channel sales strictly through designated dealers.
The committee also deliberated on inter-provincial supply. The Punjab government maintained that sugar consignments would not be dispatched to other provinces until a formal request is received from the federal government. However, authorities assured that in case of an emergency — particularly in Khyber Pakhtunkhwa, where recent floods have inflicted heavy human and financial losses — Punjab would permit supply to prevent any crisis.
Officials noted that Khyber Pakhtunkhwa currently operates four sugar mills, while Sindh runs 24 units that also cater to Balochistan’s needs. The committee underlined that the provincial government’s cautious approach was designed to balance Punjab’s own requirements with potential inter-provincial shortages.
Sources further disclosed that the points finalised in the meeting will be formally signed today by representatives of the Punjab government and the PSMA, giving legal cover to the consensus reached.