By Commerce Reporter
LAHORE: Pakistan Sugar Mills Association’s (PSMA) Chairman Chaudhry Zaka Ashraf has written a letter to Deputy Prime Minister Ishaq Dar requesting that surplus sugar may be exported at the earliest.
According to the contents of the letter, the Chairman PSMA said that we are grateful to the federal cabinet for forming a cabinet committee headed by the Deputy Prime Minister to decide on our request to export surplus sugar.
During crushing season 2025-26, sugar industry has produced surplus sugar in much excess of our local requirements. With total domestic stocks of 7.9MMT and our annual sugar consumption of 6.6MMT (after factoring in population growth), sugar industry is facing a glut like situation due to huge surplus of 1.3MMT. Even after keeping one month strategic reserve, balance surplus stocks would be 0.76MMT. By exporting this surplus sugar Pakistan can instantly earn nearly USD 500 million of much needed foreign exchange, to ease our current account deficit.
PSMA has time and again requested the federal government that such surplus sugar stocks invariably create financial crises for sugar mills and consequently to the sugarcane growers as well. Prices of sugar are much lower than its high cost of production due to constant increases in major inputs costs components causing colossal losses to the sugar industry. Sugar Industry is facing cash flow shortfall due to huge sugar stocks affecting its capacity to pay off bank loans installments on time and clear remaining payments of the farmers.
Timely better payments to sugarcane farmers in last two years has encouraged them to invest more in suitable inputs and good varieties thereby increasing per acre yield and sugar recovery. Another record sugarcane crop is estimated and there would be again surplus sugar of nearly 2 Million MT (valuing USD 1.5 – 2 Billion. Without support of prompt and proper policy decisions of the government this cycle would reverse when the industry facing losses is unable to give farmers better prices for their crop.
PSMA has requested that keeping in view of the constantly changing geopolitical situation, an early meeting of the cabinet committee may please be convened and a delegation of PSMA may be allowed to attend it, to explain their grievances.
