Pakistan sugar millers warn of looming crisis due to sales restrictions
Pakistan’s national sugar price has stayed steady at PKR177–195/kg, though Punjab averages PKR175–177/kg. Mills sell ex-mill sugar at PKR165/kg, with stocks sufficient until mid-November. Government plans to import 500,000 tonnes despite recent exports of 765,734 tonnes (FY25) have raised concerns. High cane prices (PKR700/maund) increased production costs despite earlier export-driven surpluses.
As per the Sensitive Price Index (SPI) data for the week, the national average price of sugar has stayed steady at PKR177 to PKR195 per kilogramme (kg) this month.
However, consumers paid up to PKR200 per kg in July and August. The spokesman clarified that all sugar mills are selling sugar at PKR165 per kg ex-mill, and the country has sufficient sugar stocks until mid-November. Retail prices in Punjab are between PKR175 and PKR177 per kg.
He added that while mills control ex-mill prices, retail prices are generally determined by market forces.
Questioned about sugar imports despite ample local stocks, the PSMA representative said that such decisions were within the government’s jurisdiction, though the industry could only advise on the matter. The government’s plan to import 500,000 tonnes of sugar, with the Trading Corporation of Pakistan (TCP) recently issuing tenders for 100,000 tonnes, has raised concerns in the market.
Market traders have expressed surprise at the government’s shifting stance, allowing sugar exports before reversing course and permitting imports. Exports of sugar reached 765,734 tonnes (USD411 million) in FY25, compared to just 33,101 tonnes (USD21 million) in FY24.
In July-August FY26, exports were halted. The PSMA spokesperson argued that sugar exports had no direct impact on domestic prices, as they were based on surplus stocks carried over from previous years and additional production during the 2023-24 crushing season. Despite this surplus, mills were forced to sell sugar below the production cost, leading to financial losses.
Before the export decision, official estimates had suggested a good sugarcane yield for the upcoming season. Still, climate change and global warming have since reduced both sugarcane production and its sucrose content, affecting overall sugar output.
During the previous crushing season, the price of sugarcane reached PKR700 per maund, up from PKR425 per maund in the 2023-24 season.
While this price increase benefited farmers, it significantly raised the sugar industry’s production costs.
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Source : Borneo Bulletin
