By Commerce Reporter
LAHORE: The Pakistan Sugar Mills Association (PSMA)–North Zone has expressed concern over the Punjab government’s decision to direct all sugar mills to commence the 2026-27 crushing season on November 15, saying the short notice makes it practically impossible for mills to resume operations safely.
Read also: PSMA general body calls for early sugar exports deregulation of industry
In a statement, a PSMA–North Zone spokesman said the provincial government issued the notification at 9 p.m. on November 14, directing all sugar mills in Punjab to begin crushing the following morning.
The spokesman said the Sugar Factories Control Act, 1950, permits sugar mills to commence operations by November 30, adding that the sudden notification had left mills with insufficient time to prepare.
He said sugar mills had already incurred billions of rupees in bank markup payments and were facing severe financial constraints. The markup on 100,000 tonnes of unsold sugar, part of the 300,000 tonnes imported by the government, was also continuing to accumulate, adding to financial pressure.
According to the spokesman, the sugar industry had been seeking permission since February 2026 to export one million tonnes out of an estimated surplus of 1.3 million tonnes. He said starting a new crushing season without addressing the existing surplus would further aggravate the industry’s financial difficulties.
The association claimed that data from the Federal Board of Revenue’s (FBR) Track and Trace System installed at sugar mills confirmed a surplus of 1.3 million tonnes. However, it alleged that government officials had dismissed these figures during various meetings, causing financial losses to the industry. The spokesman also questioned the absence of accountability for officials responsible for disputing the figures.
He further said mills required at least 15 days to become fully operational, including restoring boilers to full capacity, ensuring the functionality of heavy machinery and completing necessary safety arrangements for workers.
“How can mills be expected to resume full operations on the morning of November 15 when the notification was issued only the previous night?” the spokesman questioned.
The association maintained that the 2026-27 crushing season should not begin until the existing surplus sugar stocks had been cleared.
It also warned that another substantial surplus was expected by the end of the upcoming crushing season, potentially resulting in further stock accumulation and financial pressure if timely policy measures were not introduced.
The PSMA–North Zone has called on the government to deregulate the sugar sector and immediately allow the export of surplus sugar to prevent further financial losses and ensure the industry’s sustainability.
