Sugar Mills Reject Government’s 200,000-Tonne Export Quota

The Pakistan Sugar Mills Association (PSMA) has rejected the federal government’s decision to allow the export of 200,000 tonnes of sugar, calling for a significantly higher export quota to address the expected surplus.

 

The industry representatives raised their objections during Monday’s meeting of the Sugar Advisory Board, arguing that the Ministry of National Food Security had disregarded data submitted by sugar mills and failed to adequately consider the industry’s position.

 

According to the PSMA, Pakistan had sugar stocks of more than 2.6 million tonnes as of August 31, 2026. With average monthly domestic consumption estimated at around 560,096 tonnes, the industry expects approximately 1.4 million tonnes to be required to meet local demand through November 15.

 

Based on these estimates, the country could enter the 2026-27 crushing season with a surplus of around 1.25 million tonnes. At prevailing international prices, the surplus could generate approximately $600 million to $700 million in export proceeds.

 

The association also expects another strong sugarcane crop during the upcoming crushing season, with sugar production potentially exceeding 8 million tonnes.

 

Industry representatives said the government’s approved export quota was insufficient and urged authorities to immediately permit exports of at least 1 million tonnes. They warned that restricting exports could put additional pressure on sugarcane growers and the sugar industry while also limiting Pakistan’s potential foreign exchange earnings.

 

The PSMA further alleged that government actions surrounding the sale of imported sugar had contributed to price distortions. According to the association, FBR portals were temporarily closed to facilitate the sale of government-imported sugar and were reopened after domestic sugar prices declined.

 

The association reiterated its demand for complete deregulation of the sugar industry, arguing that the sector should be treated similarly to the deregulated sugarcane market.

 

The industry maintains that allowing a larger quantity of sugar exports would help absorb the expected surplus, support farmers and mills, and generate additional foreign exchange for the country.