By Commerce Reporter
LAHORE: Pakistan Sugar Mills Association has written a letter to the Federal Minister for National Food Security and Research, requesting the government to fulfill its pledge to allow export of surplus sugar within one month of the closure of crushing season 2025-26.
As per the contents of the letter, sugar stocks in the country stood at 7.967 million metric tons at the end of the last crushing season. With annual consumption of 6.786 million metric tons, there is a surplus of 1.181 million metric tons. It will take five months to export that quantity of sugar, and by then, new sugar production will start.
Over the past two years, better and timely payments to sugarcane growers have encouraged them to cultivate superior cane varieties and purchase necessary inputs, resulting in a significant increase in per-acre yield and sugar recovery. Better sugarcane crop is expected in the upcoming crushing season, resulting in higher sugar production. Sugar production of 8 million metric tons is expected in the upcoming crushing season.
At present, the sugar industry is facing the challenge of maintaining huge sugar stocks, while demand remains very low. Current sugar prices are below than production costs, whereas the price of sugarcane is rising every year. Due to unsold sugar stocks, the sugar industry is facing severe shortage of funds for repaying bank loans and clearing outstanding dues to farmers.
In view of all these factors, the government is strongly urged to grant permission for the export of 0.6 million metric tons of surplus sugar at the earliest, and to authorize the export of remaining 0.55 million metric tons within one month of the commencement of the 2026-27 crushing season.
A prompt decision in this regard will not only help the sugar industry cope with the shortage of funds but also generate much-needed foreign exchange worth approximately US$575 million for the national exchequer.
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