Pakistan : PSMA pushes for sugar export approval, says surplus can earn $500 million
Pakistan’s sugar industry has requested government approval to export 0.76 million tonnes of surplus sugar, arguing that excess stocks are causing cash-flow pressures. The Pakistan Sugar Mills Association estimates exports could generate $500 million in foreign exchange, while helping mills repay loans, clear farmer payments, and manage surplus inventories from record sugar production.
The Pakistan Sugar Mills Association (PSMA) has sought an urgent meeting with the federal cabinet committee headed by Deputy Prime Minister Ishaq Dar to seek permission for the export of surplus sugar, saying the industry is facing cash flow pressure due to excess stocks.
PSMA Chairman Chaudhry Zaka Ashraf has written a letter to Deputy Prime Minister Ishaq Dar, requesting early approval for the export of the surplus quantity.
PSMA said that even after maintaining a one-month strategic reserve, 0.76 million metric tonnes would remain available for export.
The association said export of this surplus could bring nearly $500 million in foreign exchange and support the current account position.
The association said sugar production during the 2025-26 crushing season was higher than domestic requirements. It said total domestic sugar stocks stood at 7.9 million metric tonnes, while annual consumption was estimated at 6.6 million metric tonnes after factoring in population growth. This left the industry with surplus stocks of 1.3 million metric tonnes, according to PSMA.
It said surplus stocks had repeatedly created financial stress for sugar mills and sugarcane growers, adding that sugar prices remained below the high cost of production because of increases in major input costs, causing losses to the industry.
PSMA said large sugar stocks had created cash flow problems for mills, affecting their ability to repay bank loan instalments on time and clear remaining payments to farmers.
The association said timely payments to sugarcane farmers over the past two years had encouraged them to invest in better inputs and crop varieties, improving per-acre yield and sugar recovery.
It said another record sugarcane crop was estimated, which could again result in surplus sugar of nearly 2 million metric tonnes, valued between $1.5 billion and $2 billion.
PSMA said delays in policy decisions could affect the industry’s ability to offer better prices to farmers in the next cycle.
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Source : Profit Pakistan Today
