Sugar mills warn of crushing delay amid 1.25m-tonne surplus

Pakistan’s sugar mills have warned they may delay the upcoming 2026-27 sugarcane crushing season unless the government allows larger sugar exports, citing a surplus stock of around 1.25 million tonnes.

 

The Pakistan Sugar Mills Association (PSMA) said mills need to clear existing inventories before starting the new crushing season. According to PSMA Chairperson Chaudhry Zaka Ashraf, failure to reduce the surplus could create financial pressure on mills and affect timely payments to sugarcane growers.

 

Ashraf said sugar stocks stood at around 271,000 tonnes at the beginning of the previous crushing season on November 16, 2025, while production reached approximately 7.7 million tonnes by August 31, 2026. Total availability was therefore close to 8 million tonnes.

 

With domestic consumption estimated at around 560,000 tonnes per month, PSMA expects a surplus of about 1.25 million tonnes to remain by November 15, 2026. The association estimates another 1.5 million tonnes of surplus could be added from the upcoming crop.

 

PSMA has called for immediate permission to export at least 1 million tonnes of sugar, arguing that the currently approved export quantities are insufficient to address excess stocks. The government has allowed exports of 108,000 tonnes of previously imported sugar and 200,000 tonnes from domestic production, according to the association.

 

The sugar industry has also called for a permanent export policy and greater deregulation, arguing that controlled domestic sugar prices while allowing relatively greater flexibility in other parts of the supply chain are creating financial pressure on mills.

 

PSMA said Pakistan could produce up to 15 million tonnes of sugar annually during a 150-day crushing season without fresh investment. It also sees export potential for sugar and ethanol, particularly in markets across Central Asia, Afghanistan and China.