Key Takeaways
- The Pakistan Sugar Mills Association (PSMA) has requested government approval for exporting surplus sugar.
- By November 15, 2026, the country will have a surplus of 1.158 million metric tons of sugar.
- Uncertainty over export approval is causing concern among sugarcane farmers as the September sowing season approaches.
The Pakistan Sugar Mills Association (PSMA) has written to key government officials, seeking permission to export surplus sugar. The letters were addressed to Deputy Prime Minister Senator Ishaq Dar and Federal Minister for National Food Security and Research Rana Tanveer Hussain.
According to the PSMA, as of July 15, 2026, there are 3.4 million metric tons of sugar stocks in the country, reconciled by the FBR and the sugar industry. The average monthly consumption is 567,426 metric tons, indicating a surplus stock of 1.158 million metric tons at the start of the new crushing season on November 15, 2026.
A spokesperson for the PSMA expressed deep concern over the uncertainty facing sugarcane farmers as they prepare to sow in September. They are worried because large quantities of surplus sugar remain in mill warehouses, and until this stock is exported, mills will be unable to purchase more cane or offer better rates to farmers.
Better and timely payments to sugarcane growers over the past two years have encouraged them to cultivate higher-yielding varieties, resulting in a significant increase in per-acre yield and sugar content. A good sugarcane crop is expected in the upcoming crushing season, leading to surplus sugar production. However, this will only be possible if export permission is granted for current surplus stocks.
Without timely exports, the PSMA warns that farmers may reduce cultivation of new crops, leading to a decline in sugarcane and sugar production in coming years. This would result in the need to import sugar at the cost of valuable foreign exchange.
The sugar industry currently faces challenges due to large stockpiles while domestic demand remains low. Current sugar prices are far below production costs, with rising input costs exacerbating financial difficulties. Unsold stocks have led to a severe shortage of funds for repaying bank loans.
In light of the reconciled figures, the PSMA has requested immediate permission to export 585,000 tonnes of surplus sugar and later authorize the export of strategic reserve stocks within one month of the commencement of the upcoming crushing season.
