Punjab govt, sugar mills seal deal on supply mechanism

LAHORE: The Punjab Government and the Pakistan Sugar Mills Association (North Zone) on Tuesday officially signed an agreement to regulate sugar supply and distribution across the province, following a meeting chaired by Director General (Food) and Cane Commissioner Punjab, Naveed Shahzad Mirza.

The session, held at the office of the Cane Commissioner was attended by senior Food Department officials and representatives of major sugar mills, including Hunza, Almoiz, Shakarganj, Patoki, and Tariq Corporation. The accord, signed with mutual consensus, settled long-standing disputes over allocation, pricing and distribution of sugar stocks.

According to the official agreement — duly signed by Sohail Shahzad, Secretary General on behalf of the Pakistan Sugar Mills Association (North Zone), and Director General (Food)/Cane Commissioner Punjab, a copy of which is available with The News — 30 percent of sugar from each mill would be supplied through nominated brokers to dealers designated by deputy commissioners at the notified ex-mill price, forming the baseline for district-wide distribution.

Of the remaining 70 percent, mills would be allowed to sell 30 percent within the province through their brokers at the notified price, while up to 40 percent could be sold to the corporate sector.

It was further agreed that all dealer payments deposited before August 14, 2025 at Rs165 per kilogram would be honoured without delay, with mills bound to release the paid stocks at that rate. Going forward, payments made by the 13th of each month would entitle dealers to lift sugar at the prevailing notified rate, while payments after this date would be subject to any revised prices from the 15th onwards. Brokers would be required to deposit collected amounts into the respective mills’ accounts on the same day or the following day to ensure timely supply.

All sugar mills in Punjab would also be required to submit updated lists of their nominated brokers to the Cane Commissioner’s office for record-keeping and circulation among deputy commissioners. These officials, along with Additional Cane Commissioners, would oversee the entire allocation and distribution. The arrangement was designed to ensure transparency, prevent hoarding, and maintain a steady supply chain, with complete records and monitoring reports furnished regularly to the Food Department.