The Pakistan Sugar Mills Association (PSMA) has called on the government to permit the immediate export of surplus sugar, warning that delays will harm sugarcane farmers and the industry. In a general body meeting of the PSMA North Zone held in Lahore on Wednesday, chaired by North Zone Chairman Chaudhry Muhammad Aslam, members from Punjab and Khyber Pakhtunkhwa participated.
Government Promises Unfulfilled
Chaudhry Muhammad Aslam stated that the government had made a written promise on July 14, 2025, to allow the export of surplus sugar above 7 million metric tons within one month of the close of the 2025-26 crushing season. It also pledged to completely deregulate the sugar sector by June 2026 and remove restrictions on sugar exports and imports. However, none of these promises have been fulfilled yet.
Surplus Stock and Domestic Consumption
PSMA members highlighted that Pakistan’s sugar industry produced more sugar than domestic needs during the 2025-26 crushing season. With domestic consumption at 6.6 million metric tons and existing stock at 7.9 million metric tons, a surplus of 1.3 million metric tons is available. The association accused some government quarters of attempting to understate the surplus by manipulating data, which could negatively impact the 2026-27 crushing season and the economy.
Financial Impact on Mills and Farmers
Seven and a half months have passed since the crushing season ended, leaving only four and a half months before the next season. Sugar mills are currently selling sugar at an ex-mill rate of less than Rs 135 per kg, well below their production cost. The PSMA warned that without export permission, millions of sugarcane farmers will be directly affected. With an estimated 20 percent increase in sugarcane crop next year, farmers may struggle to get a fair price.
Consequences of Delayed Exports
The surplus reserves will carry over to the next season, forcing sugar mills to delay the start of the next crushing season. The meeting participants urged the government to allow immediate export of surplus sugar to safeguard farmers' interests and save the industry from heavy losses. Exporting the surplus could fetch nearly US$620 million in foreign exchange.
