Sugar millers have obtained a stay order from the Lahore High Court (LHC) against the Punjab government’s directive to begin sugarcane crushing from November 15, delaying the start of the season despite a federal agreement requiring mills to commence operations on November 1.
According to media reports, the stay order, granted on Friday, pauses Punjab’s notification until November 17. The mills argued that under the Punjab Sugar Factories Control Act, 1950, the crushing season must begin on or before November 30, and claimed the province’s November 15 directive was unlawful and discriminatory, as other provinces had not issued similar orders.
The Punjab government had pushed for an early start to prevent sugar shortages and ensure farmers receive timely payments. Stocks have fallen to critical levels, and the province had sought to avoid disruptions in the supply chain.
Punjab’s law officer told the court the notification was issued on cabinet directions and was in line with the law but sought more time to receive instructions from the relevant authorities.
The LHC observed that the petition needs consideration and suspended the notification till Nov 17.
Federal Minister for National Food Security Rana Tanveer Hussain, who negotiated a July agreement with the Pakistan Sugar Mills Association (PSMA), said the stay order violates commitments made to the federal government. The mills were required to start crushing from November 1,” he said.
He claimed the delay was driven by commercial motives. “The purpose of getting the stay was to keep prices high and sell the remaining 207,000 tonnes of sugar at prevailing rates. Had they begun crushing on November 1, sugar prices would have dropped below Rs150 per kg,” he said.
The Pakistan Bureau of Statistics reported on Friday that the average retail sugar price has surged to Rs185.5 per kg, a year-on-year increase of 40.3%, the second-highest jump among monitored commodities.
