Sugar Mills Claim Crushing Could Be Delayed Unless Govt Allows More Exports

Notably, the Pakistan Sugar Mills Association has demanded immediate permission to export at least one million tonnes of sugar, warning that the growing surplus could force mills to delay the start of the 2026-27 crushing season.

Key points

• The administration has so far allowed the export of 108, 000 tonnes of previously imported sugar and 200, 000 tonnes of domestically produced sugar.
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• Ashraf remarked the industry could produce up to 15 million tonnes of sugar annually during a 150 day crushing season without further investment or expansion.
• He identified Central Asian countries, Afghanistan and China as potential markets for Pakistani white sugar, saying Pakistan's geographic proximity could provide a transportation advantage over competing suppliers.

PSMA Chairman Zaka Ashraf remarked on Wednesday that sugar mills could pay sugarcane growers international costs if the administration fully deregulated the sugar sector. He continued that mills could additionally share extra revenue from sugar exports with growers under a complete deregulation mechanism.

Ashraf remarked Pakistan produced around 7.7 million tonnes of sugar during the 2025-26 crushing season, along with carryover stocks of 271, 000 tonnes, taking total available sugar to almost 8 million tonnes. Pakistan Climbs Five Places in Global Gender Gap Report 2026.

With domestic consumption estimated at around 560, 000 tonnes per month, the association expects a surplus of approximately 1.25 million tonnes by November 15 after session domestic requirements.

Notably, the administration has so far allowed the export of 108, 000 tonnes of previously imported sugar and 200, 000 tonnes of domestically produced sugar. PSMA has termed the permitted quantity insufficient and pressed the administration to allow exports of at least one million tonnes immediately.

Ashraf remarked exporting the surplus would assist clear stocks, protect the sugar industry and generate foreign exchange. He cautioned that mills could delay crushing if the administration did not allow exports of surplus sugar.

He remarked the sugar industry was Pakistan's second largest agro based industry after textiles and maintained that it generated more than Rs. 1 trillion in annual direct and indirect business activity throughout agriculture, transportation, allied industries and wholesale and retail markets. He continued that the sector contributed around Rs. 300 billion in direct and indirect taxes to federal, provincial and local governments. Media Watchdog Raises Data Privacy Reservations Over Google-Pakistan Agreement.

PSMA remarked the sugar industry remained one of the country's most heavily regulated sectors despite repeated administration assurances regarding deregulation. While sugar for domestic consumption remains subject to administration controls, including provincial determination of ex mill rates, payment schedules and penalties, around 70 percent of sugar production applied by commercial and industrial consumers has been deregulated.

Notably, the association pressed sugar costs to be deregulated in the same way as sugarcane rates and for both imports and exports to be allowed.

Ashraf remarked the industry could produce up to 15 million tonnes of sugar annually during a 150 day crushing season without further investment or expansion. While ethanol exports could generate another $1 billion, he asserted that up to 8 million tonnes could potentially be exported, generating around $4 billion annually.

He identified Central Asian countries, Afghanistan and China as potential markets for Pakistani white sugar, saying Pakistan's geographic proximity could provide a transportation advantage over competing suppliers. The PSMA additionally highlighted the sugar industry's apply of bagasse to meet its energy needs and noted surplus electricity generated by mills could provide opportunities to supply power to other industrial users. Stay Connected with ProPakistani.

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For now, sugar Mills Claim Crushing Could Be Delayed Unless Govt Allows More Exports remains the part of the story worth watching, and further updates are likely as more details are confirmed.