By Commerce Reporter
ISLAMABAD: The Pakistan Sugar Mills Association (PSMA) has opposed the government’s decision to approve the export of 200,000 metric tons of sugar, arguing that the country has sufficient stocks and a surplus is expected before the upcoming crushing season.
In a statement issued after the Sugar Advisory Board meeting on Monday, the association said representatives of the sugar industry participated in the meeting but expressed concerns that the data presented by sugar mills was not properly considered by the Ministry of National Food Security.
The PSMA claimed that Pakistan had sugar stocks of around 2.6 million metric tons as of August 31, 2026, while domestic consumption requirements for the remaining period until mid-November would be significantly lower.
According to the association, average monthly sugar consumption stands at around 560,096 metric tons, meaning approximately 1.4 million metric tons would be required to meet domestic demand for the remaining two and a half months.
Based on these estimates, the sugar industry said the country could have a surplus stock of around 1.25 million metric tons when the 2026-27 crushing season begins.
The association said the surplus could generate foreign exchange earnings of around $600 million to $700 million if exported at prevailing international market prices.
The PSMA further stated that another strong sugarcane crop was expected during the 2026-27 crushing season, with sugar production projected to exceed 8 million tonnes.
Industry seeks approval for one million-ton export
The sugar industry representatives said the export quota approved by the government was insufficient and urged authorities to immediately allow the export of at least one million metric tons of sugar.
They warned that limiting exports could negatively affect sugarcane growers and the sugar industry while depriving Pakistan of potential foreign exchange inflows.
The association argued that timely exports were necessary to maintain market stability and support farmers ahead of the new crushing season.
Mills raise concerns over government policies
The PSMA also criticised certain government measures related to sugar trade and taxation.
The association alleged that the closure of FBR portals had affected the industry’s ability to conduct transactions and claimed that the move facilitated the sale of government-imported sugar, which contributed to higher prices.
The association said the portals were reopened after sugar prices declined, raising concerns among industry stakeholders.
The sugar industry representatives also called for complete deregulation of the sugar sector, similar to the sugarcane sector, arguing that market-based mechanisms would improve efficiency and reduce government intervention.
The government has yet to issue a detailed response to the concerns raised by the sugar mills association.
Tags: Pakistan sugar industry, Pakistan Sugar Mills Association, sugar export, sugar stocks, Sugar Advisory Board, sugarcane growers, PSMA, food security, Pakistan economy, exports, foreign exchange
