Pakistan Sugar Mills Association urges government to approve export of 585,000 tonnes of surplus sugar
Record sugar inventories and expectations of another bumper crop have intensified calls for export approvals to support farmers and stabilise the market.
PAKISTAN – The Pakistan Sugar Mills Association (PSMA) has called on the government to immediately approve the export of 585,000 tonnes of surplus sugar, warning that rising inventories and another expected bumper sugarcane crop could place additional financial pressure on mills and threaten timely payments to farmers.
According to the association, Pakistan had approximately 3.4 million tonnes of sugar stocks as of July 15, 2026. With average monthly domestic consumption estimated at about 567,000 tonnes, the country is expected to retain a surplus of roughly 1.16 million tonnes by the start of the next crushing season on November 15.
The industry body said the situation could become more challenging if production continues to rise. PSMA estimates that sugar production during the 2026/27 season could reach around 8 million tonnes, significantly exceeding domestic demand.
The association warned that, without immediate export approvals, sugar mills could face increasing difficulties in purchasing additional sugarcane supplies and maintaining competitive prices for growers.
According to PSMA, prompt payments made to farmers during the past two years have encouraged the adoption of improved sugarcane varieties, contributing to higher yields and better sugar recovery rates.
However, the association said large inventories and relatively low domestic sugar prices have created liquidity constraints for mill operators.
The industry group also noted that the financial pressures are making it more difficult for sugar producers to service outstanding bank loans while preparing for the upcoming crushing season.
PSMA is urging the government not only to approve the immediate export of 585,000 tonnes of sugar but also to consider authorising additional exports from strategic reserve stocks within one month of the commencement of the new crushing season.
According to the association, these measures would help balance supply and demand while strengthening the financial position of both farmers and sugar processors.
The association stated that increased exports would also reduce the risk of excessive domestic oversupply and help maintain stability across the country’s sugar value chain.
Last month, the government postponed a decision on sugar exports, choosing instead to review the proposal closer to the start of the next crushing season to ensure sufficient domestic supplies and prevent any increase in retail sugar prices.
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