PMEX to Introduce Deliverable Sugar Futures

The Pakistan Mercantile Exchange (PMEX) is set to introduce Deliverable Sugar Futures after receiving approval from the Securities and Exchange Commission of Pakistan (SECP).

PMEX views this launch as a significant advancement towards greater transparency and efficiency in Pakistan’s sugar trading sector.

The sugar industry, a major agro-based sector in Pakistan, has been grappling with issues such as unregulated pricing, excessive speculation, hoarding practices, and inefficiencies within the supply chain.

The introduction of Deliverable Sugar Futures on PMEX is expected to provide the industry with a regulated, nationwide platform. This platform aims to enable transparent price discovery, facilitate streamlined trading processes, support effective risk management strategies, and improve overall market documentation.

Roadshows and Industry Engagement

In preparation for the launch, PMEX organized roadshows in key cities, including Sargodha and Lahore, which are major sugar trading centers in Pakistan. These events brought together sugar millers, brokers, traders, dealers, and significant sugar buyers.

These sessions provided participants with comprehensive information on the new contract specifications, live trading demonstrations, details on the account opening procedure, and training on simulated trading on PMEX prior to the contract’s official launch.

Support from Regulators and Government

Abdul Rehman Warraich, Commissioner of SECP, and Muhammad Ajmal Bhatti, Secretary of the Price Control & Commodities Management Department, Government of Punjab, addressed the attendees, expressing their support for the initiative and assuring full backing from the regulator and the provincial government, respectively.

PMEX CEO Khurram Zafar emphasized the transformative potential of the initiative, stating that while sugar is a heavily traded commodity in Pakistan, it currently lacks structure and transparency. He believes that Sugar Futures will bring transparency, price stability, and fairness to the trading process.