PKI calls for 1 MT sugar export, complete deregulation of Pakistan sugar sector
Pakistan Kissan Ittehad has urged complete deregulation of the sugar sector and immediate export of 1 million tonnes before the November 15 crushing season. PKI warned that surplus stocks of around 1.3 million tonnes could depress sugarcane prices. It also proposed halting new mills until existing capacity reaches 75% utilisation.
LAHORE: Complete deregulation of Pakistan’s sugar sector could create a more efficient and market-driven industry while helping address domestic supply and export surplus concerns, Pakistan Kissan Ittehad (PKI) president Khalid Mahmood Khokhar said.
Speaking at a press conference on Friday, Khokhar urged the government to immediately allow the export of one million tonnes of sugar before the crushing season begins on November 15. He warned that failure to clear surplus stocks could put pressure on sugarcane prices and adversely affect farmers’ incomes.
According to the Pakistan Economic Survey 2025-26, sugarcane accounts for around 0.8% of Pakistan’s GDP and 3.2% of agricultural value addition. During FY2025-26, sugarcane cultivation increased 2.4% to around three million acres, while production rose 6.2% to a record 89.45 million tonnes. Average yield improved about 3.7% to 780 maunds per acre.
Khokhar said sugarcane cultivation had now crossed 3.5 million acres and production could rise by 10-15% from last year. Pakistan is also carrying around 1.3 million tonnes of surplus sugar, raising concerns over a possible decline in sugarcane prices when the new crushing season starts.
He cited the 2017-18 experience, when delayed decisions on sugar exports contributed to a sharp fall in sugarcane prices and reportedly caused farmers a collective loss of around Rs100 billion.
Khokhar proposed complete deregulation of the sector, with imports, exports, production and pricing determined by market forces instead of government permissions and administrative controls.
He also called for a moratorium on new sugar mills until existing capacity reaches at least 75% utilisation. Once new mills are permitted, he proposed maintaining a minimum distance of 50 miles between mills to prevent excessive concentration and improve commercial viability.
He further demanded the abolition of Sugar Acts in all provinces, arguing that this would remove regulatory distortions and support a genuinely market-driven industry.
According to Khokhar, the proposed reforms would encourage mills to improve sugarcane productivity in their respective catchment areas, support sustainable raw material supplies and help maintain profitability for both farmers and the sugar industry.
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Source : ChiniMandi
