Pakistan : PSMA urges govt again to allow surplus sugar exports
Pakistan Sugar Mills Association has urged the government to allow immediate export of 633,000 tonnes of surplus sugar. Stocks stood at 3.171 million tonnes by July 31, with surplus projected at 1.197 million tonnes before the 2026-27 crushing season, amid weak demand and financial pressures.
LAHORE: Pakistan Sugar Mills Association (PSMA) has written a third letter to Federal Minister for National Food Security and Research Rana Tanveer Hussain, requesting the government to immediately allow export of surplus sugar before the start of crushing season 2026-27.
As per the contents of the letter, there are 3.171 million metric tons of sugar stocks in the country as of 31st July, 2026—reconciled and agreed upon by the FBR and the sugar industry—while the average monthly consumption is 564,196 metric tons. Hence, by the start of the new crushing season 2026-27 on November 15, the country will hold a massive surplus stock of 1.197 million metric tons of sugar. A bumper sugarcane crop is expected again in the upcoming crushing season, which will again result in the production of 8 million metric tons of sugar—far exceeding domestic requirements, claimed PSMA.
At present, the sugar industry is facing the challenge of maintaining huge sugar stocks, while demand remains very low. Current sugar prices are below than production costs, whereas the price of sugarcane is rising every year. Due to unsold sugar stocks, the sugar industry is facing severe shortage of funds for repaying bank loans and clearing outstanding dues to farmers, said the letter.
In light of the reconciled figures, the Association requested the government to immediately grant permission to export 633,000 tonnes of surplus sugar and later authorize the export of 564,000 tonnes of remaining surplus stocks within one month of the commencement of the upcoming crushing season.
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Source : Business Recorder
