Punjab, PSMA Seal Sugar Supply Agreement

Lahore, August 19, 2025, 06:39 PM PKT — The Punjab government’s Sugar Coordination Committee and the Punjab Sugar Mills Association (PSMA) have forged a pivotal agreement in a joint meeting, resolving bitter disputes over sugar pricing and distribution, as reported by The News, setting a comprehensive supply framework. 10,000 metric tonnes of sugar, bought pre-August 14, will reach dealers at Rs165 per kilogram at the ex-mill rate, despite mills’ rejected plea for a Rs2 hike, per official terms. The distribution plan allocates 40% to the corporate sector, 30% via registered dealers, and 30% through deputy commissioners, aiming to streamline sales, curb tax leakages, and boost transparency, ending mills’ prior rerouting to evade a five percent sales tax exemption.

On inter-provincial supply, Punjab insists on federal requests for exports, but amid recent Khyber Pakhtunkhwa floods, pledges sugar aid to avert a crisis, balancing its needs against Khyber Pakhtunkhwa’s four mills, Sindh’s 24 mills (also serving Balochistan), and provincial caution. The final terms, to be signed today by Punjab officials and PSMA, gain legal weight. Web context on sugar policies shows past tensions, while posts found on X reflect relief mixed with skepticism—some applaud stability, others question fairness. Critically, the narrative of “supply resolution” may mask regional imbalances—web data hints at supply disparities, and X sentiment suggests distrust in equitable distribution, pointing to potential friction.