Shafaqna Pakistan: The Pakistan Sugar Mills Association (PSMA) has once again urged the government to allow sugar exports, citing a substantial surplus in domestic production during the 2025–26 crushing season.
In a letter addressed to Deputy Prime Minister Ishaq Dar, PSMA Chairman Chaudhry Zaka Ashraf stated that the sugar industry had produced quantities far exceeding local demand. He noted that total domestic sugar stocks currently stand at 7.9 million tonnes, while annual consumption is estimated at 6.6 million tonnes after accounting for population growth.
According to Ashraf, the industry is facing a glut due to a surplus of approximately 1.3 million tonnes of sugar. He added that even after maintaining a one-month strategic reserve, around 0.76 million tonnes would remain available for export.
The PSMA chairman argued that permitting the export of this excess sugar could generate nearly $500 million in much-needed foreign exchange earnings, which could help ease pressure on Pakistan’s current account deficit.
The PSMA chairman requested that surplus sugar might be exported at the earliest, saying “we are grateful to the federal cabinet for forming a cabinet committee headed by the deputy prime minister to decide on our request to export surplus sugar”.
He stated that the PSMA had time and again requested the federal government that such surplus sugar stocks invariably create financial crisis for sugar mills and consequently to the sugarcane growers as well. Prices of sugar are much lower than its high cost of production due to constant increases in major input cost components, causing colossal losses to the sugar industry.
The sugar industry is facing cash flow shortfall due to huge sugar stocks affecting its capacity to pay off bank loans instalments on time and clear remaining payments of the farmers, said the letter.
The PSMA chief said that timely better payments to sugarcane farmers in the last two years encouraged them to invest more in suitable inputs and good varieties, thereby, increasing per acre yield and sugar recovery. Another record sugarcane crop is estimated and there would be again surplus sugar of nearly 2 million tonnes, valued at US$1.5-2 billion. Without support of prompt and proper policy decisions of the government, this cycle would reverse when the industry facing losses is unable to give farmers better prices for their crop, he added.
The PSMA chief requested that keeping in view the constantly changing geopolitical situation, an early meeting of the cabinet committee should be convened and a delegation of the PSMA should be allowed to attend it to explain its grievances.
Source: The News
