LAHORE (The Tribune International) – The Pakistan Sugar Mills Association (PSMA) has urged the federal government to immediately allow the export of surplus sugar before the start of the 2026-27 crushing season, warning that excess stocks could create serious financial challenges for the industry.
In a third letter addressed to Federal Minister for National Food Security and Research Rana Tanveer Hussain on Tuesday, the association said the country had 3.171 million metric tonnes of sugar stocks as of July 31, 2026, with figures reconciled and agreed upon by the Federal Board of Revenue (FBR) and the sugar industry.
According to PSMA, Pakistan’s average monthly sugar consumption stands at 564,196 metric tonnes, meaning the country is expected to have a surplus stock of around 1.197 million metric tonnes by November 15, when the new crushing season is scheduled to begin.
The association said another bumper sugarcane crop is expected during the upcoming season, which could lead to sugar production of nearly 8 million metric tonnes, significantly exceeding domestic demand.
PSMA highlighted that the sugar industry is currently struggling with large unsold inventories amid weak market demand. It claimed that prevailing sugar prices are below production costs, while sugarcane prices continue to increase annually.
The association warned that the accumulation of unsold stocks has created a severe shortage of funds for sugar mills, affecting their ability to repay bank loans and clear outstanding payments to farmers.
Seeking immediate government intervention, PSMA requested permission to export 633,000 tonnes of surplus sugar immediately, followed by approval for exporting an additional 564,000 tonnes within one month of the commencement of the new crushing season.
The sugar industry believes timely export permission would help reduce surplus stocks, improve liquidity, and support payments to farmers ahead of the new production cycle.
