In a groundbreaking move, the Pakistan Mercantile Exchange (PMEX) is set to officially launch its first-ever deliverable futures contract in agriculture—Sugar Futures—within the next two weeks.
As the country’s only electronic platform for commodity futures trading, PMEX is introducing a 30-day deliverable sugar futures contract, each unit representing 12 metric tons. This launch follows recent approval from the Securities and Exchange Commission of Pakistan (SECP), marking a pivotal moment for Pakistan’s agricultural commodity market.
🍬 Why It Matters
The introduction of deliverable sugar futures is designed to:
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Enable transparent price discovery
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Discourage hoarding and excessive speculation
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Improve supply chain management
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Enhance market documentation and risk management
“PMEX aims to launch deliverable Sugar Futures in 10 to 15 days,” said Zaki Ur Rehman, PMEX Chief Business Officer. He emphasized that this would be the exchange’s first physical delivery-based agri-contract, setting a new benchmark in structured commodity trading.
🔍 Background & Market Relevance
Sugar is a staple in Pakistan’s agriculture economy but has long suffered from:
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Unregulated pricing
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Lack of market transparency
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Artificial shortages caused by hoarding
PMEX hopes to address these issues by onboarding stakeholders across the supply chain, including around 80 sugar mills nationwide and corporate buyers such as confectionery and beverage companies.
🧾 Contract Highlights
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Type: Deliverable Sugar Futures
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Duration: 30 days
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Unit Size: 12 Metric Tons
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Trading Platform: PMEX
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Target Participants: Sugar mills, brokers, corporate buyers, traders, dealers
🧠 Training & Outreach
To ensure readiness, PMEX conducted roadshows in key trading cities such as Lahore and Sargodha—Pakistan’s largest sugar hubs. These sessions included:
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Live trading demos
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Mock training
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Onboarding of sugar mills and brokers
📣 Leadership Remarks
“Despite being a major traded commodity, sugar lacked structure and transparency. With this contract, we aim to bring price stability and a regulated trading environment,” said Khurram Zafar, CEO PMEX.
