Pakistan sugar industry urges government to approve exports of 767,000 tons surplus
Pakistan’s sugar mills push for exports of surplus stocks, warning of financial strain while highlighting potential to generate up to $500 million in foreign exchange earnings.
PAKISTAN – Pakistan’s sugar industry has called on the government to approve the export of surplus sugar from the ongoing 2025–26 crushing season, saying the move could generate up to US$500 million in foreign exchange and ease financial pressure on millers.
The Pakistan Sugar Mills Association (PSMA) urged authorities to take immediate action, citing rising stock levels and weakening domestic demand.
In a statement, a spokesperson for the association said carry-forward stock from the previous season stood at 271,704 metric tons as of November 15, 2025. This included 117,541 metric tons of locally produced sugar and 154,163 metric tons of imported sugar.
According to data from the Federal Board of Revenue (FBR) dated March 31, 2026, sugar production during the current crushing season, which began in November 2025, reached 7.573 million metric tons. The association said this figure is expected to rise to 7.6 million tons once all mills complete processing.
The PSMA added that, based on the average of the previous two years, an additional 86,809 metric tons of sugar from sugar beet is likely to be produced between April and June 2026. When combined with carry-forward stocks and current production, total sugar availability is projected to reach 7.958 million tons.
Referring to FBR figures, the spokesperson said Pakistan’s annual sugar supply between November 16, 2024 and November 15, 2025 stood at 6.476 million tons, translating to average monthly consumption of 539,662 tons.
Taking into account a population growth rate of 2.5%, the association projected annual sugar consumption for the coming year at 6.638 million tons.
“This indicates a surplus stock of 1.320 million metric tons. Even after maintaining an additional one-month strategic reserve, there will still be a surplus of 767,000 tons,” the spokesperson said.
Millers warned that holding such large inventories is creating financial strain, particularly as sugar prices remain below production costs. The association attributed the situation to rising sugarcane prices and increasing input costs, which are eroding profitability.
The spokesperson also linked the export request to broader economic pressures, noting that higher international oil prices, driven by the Iran-US conflict, are increasing Pakistan’s import bill.
“In that context, the government should permit the export of 767,000 tons of surplus sugar,” the spokesperson said, adding that such exports could generate between US$400 million and US$500 million.
The PSMA maintained that available data shows a substantial surplus even after accounting for projected domestic consumption and a one-month strategic reserve.
It urged the government to act swiftly and allow exports of excess sugar from the current season to stabilize the industry.
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