Sugar mills seek export approval as surplus stocks reach 1.3 million tonnes

The Pakistan Sugar Mills Association (PSMA) has urged the government to allow immediate export of surplus sugar, warning that excess stocks and low prices are putting pressure on mills and sugarcane farmers.

As per reports, the issue was raised at a PSMA (North Zone) general body meeting held in Lahore on Wednesday. The meeting was chaired by North Zone Chairperson Chaudhry Muhammad Aslam and attended by members from Punjab and Khyber Pakhtunkhwa.

PSMA said the sugar industry produced more than domestic requirements during the 2025-26 crushing season.

According to the association, domestic consumption is estimated at 6.6 million metric tonnes, while existing stocks stand at 7.9 million metric tonnes, leaving a surplus of 1.3 million metric tonnes.

The association said mills are currently selling sugar at an ex-mill rate of less than Rs135 per kg, which is below the cost of production.

Chaudhry Muhammad Aslam said the government had made written commitments on July 14, 2025, but these had not been implemented.

He said the commitments included permission to export surplus sugar above seven million metric tonnes within one month of the close of the 2025-26 crushing season, complete deregulation of the sugar sector by June 2026 on the pattern of other industries, and removal of restrictions on sugar exports and imports.

PSMA members expressed concern that some government quarters were again trying to understate the surplus through data adjustments, without considering the impact on the 2026-27 crushing season and the wider economy.

They said seven and a half months had passed since the last crushing season ended, while only four and a half months remained before the next season begins, but surplus stocks were still above domestic needs.

The meeting noted that if export permission is not granted, millions of sugarcane farmers could be affected.

Participants said the sugarcane crop is expected to increase by 20% next year, which could put further pressure on farmers if current surplus stocks are carried forward.

They warned that the carryover stock could also force mills to delay the start of the next crushing season.

PSMA urged the government to permit export of the surplus to protect farmers, avoid losses for the industry and help mills start the upcoming crushing season on schedule.

The association said sugar exports could generate nearly $620 million in foreign exchange.