Inefficiencies limit Pakistan’s sugar exports to just $1.6 billion over a decade: report
Pakistan’s sugar industry exported $1.6 billion over the past decade but remains inefficient and inconsistent, underusing capacity and relying heavily on sugarcane. Despite export potential and value-addition opportunities, policy uncertainty and production gaps continue to limit global competitiveness.
Over the past decade, Pakistan’s sugar industry has exported $1.6 billion in sugar while importing $314 million, BR reported, citing official data. Despite being the seventh-largest global sugarcane producer, Pakistan’s sugar exports have remained irregular and limited, with the country holding only a 6% share of global sugar production.
The data highlights underutilisation of Pakistan’s production potential, as the country remains dependent on local sugarcane, with minimal diversification in raw material sources. Pakistan primarily exports raw and processed sugar to Tajikistan, China, Afghanistan, and Saudi Arabia, while importing raw sugar from the UAE, Egypt, Brazil, Algeria, India, and Saudi Arabia.
The area under sugarcane cultivation in Pakistan has increased to 1.195 million hectares over the last 10 years, with annual production reaching approximately 79 million metric tons. Sugar production saw a significant rise from 4.8 million tons in 2019–20 to 7.8 million tons in 2021–22, reflecting year-on-year growth. However, sugar production from beets remains minimal, accounting for just 1.16% of total output, showing a heavy reliance on sugarcane.
Despite the growth in sugarcane production, the industry faces inefficiencies. Official data reveals that during the typical 100-day crushing cycle, available sugarcane meets only 60% of industrial needs, resulting in a 40% loss in sugar mill production capacity. This inefficiency significantly hampers Pakistan’s competitiveness in the global sugar market.
Another challenge lies in the price difference between raw and refined sugar in international markets. On average, this gap stands at $73 per ton, presenting an opportunity for value addition. In 2023, refined sugar was priced at $660 per ton, while raw sugar was priced at $570 per ton.
Although the price difference narrowed to $54 per ton in 2024, it still offers a commercially attractive opportunity for Pakistan to increase exports by refining and processing sugar.
However, inconsistent export policies, production inefficiencies, and lack of planning have limited the growth of Pakistan’s sugar sector. The government’s decision to fully deregulate the sugar industry may help address some of these challenges, but the sector remains constrained by longstanding issues.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : Profit Pakistan Today
