Pakistan’s sugar mills are asking the federal government for clearance to export an additional 800,000 tonnes of sugar, the Pakistan Sugar Mills Association (PSMA) North Zone said, after the industry reported losses of Rs98 billion alongside a large domestic surplus.
A PSMA North Zone spokesperson, in a statement issued on Sunday, linked the squeeze to a surplus estimated at 1.3 million tonnes and a sharp drop in domestic prices—down by as much as 25% over the past year, citing weekly figures from the Pakistan Bureau of Statistics (PBS), the national statistics agency. Mills say they are struggling to cover production costs and meet financial obligations.
Surplus stocks and the export request
The association said it had repeatedly urged timely export of surplus sugar after the 2025-26 crushing season closed. Policy delays, it argued, left large stocks unsold and raised financing and inventory-carrying costs, including interest on bank borrowings used to hold unsold sugar.
To ease pressure, PSMA wants permission for 800,000 tonnes over and above the 200,000 tonnes already approved—bringing sought surplus exports to at least one million tonnes, which it says is needed to restore financial stability. It also called for complete deregulation of the sugar sector so market forces set prices and guide commercial decisions.
Mill closures and the next crushing season
According to the association, at least 12 sugar mills across Pakistan have already shut because of mounting losses, and several others face closure risk. That strain could delay the start of the 2026-27 crushing season and weaken mills’ ability to offer remunerative prices to sugarcane farmers.
Pakistan is entering the new season with that estimated 1.3 million-tonne surplus still on hand. The industry expects another strong crop, with output projected at about 8.5 million tonnes. Fresh production without clearing existing inventories, PSMA warned, could deepen the glut and push domestic prices lower still.
The association claimed sugar prices in Pakistan are among the lowest globally even though sales tax on the commodity is relatively high. It cautioned that leaving the surplus unresolved could hurt cane growers, mills and the wider agricultural economy—and that Pakistan might later have to import sugar, spending foreign exchange instead of earning it from exports.
Aasan alfaaz mein
Sugar mills kehte hain unko Rs98 arab ka nuqsan hua hai aur desh mein cheeni zyada pad gayi hai. Woh hukumat se mazeed 800,000 ton cheeni bahar bhejne ki ijazat mang rahe hain. Pehle se 200,000 ton ki ijazat mil chuki hai; kam az kam ek million ton export chahiye, unka kehna hai. Agar surplus nahi nikla to qeemat aur gir sakti hai, mills band ho sakti hain, aur ganne walon ko bhi asar pad sakta hai.
