Pakistan may delay sugarcane crushing season amid 1.1 mln tons of surplus sugar

Pakistan’s sugar mills may postpone the start of the 2026/27 sugarcane crushing season until at least December due to substantial unsold sugar stocks and financial difficulties facing processors. According to the Pakistan Sugar Mills Association (PSMA), the country’s surplus sugar stocks amount to around 1.1 mln tons. Industry representatives warn that without expanded export opportunities and changes to government regulations, mills will struggle to finance the purchase and processing of the new sugarcane crop.

At a PSMA meeting on November 11, producers urged the government to immediately authorize the export of an additional 400 thsd tons of sugar. The authorities had previously approved an export quota of 200 thsd tons, but its implementation remains problematic. Industry representatives argue that delays in export approvals are limiting mills’ ability to reduce finished product inventories and secure funds to begin the new production season.

Market participants emphasize that accumulating sugar stocks are putting increasing financial pressure on processing companies. Large volumes of unsold products are tying up working capital needed to pay sugarcane growers and maintain day-to-day operations. According to the association, under current conditions, mills will be unable to begin crushing before December 2026, potentially affecting the timing of new-crop purchases.

In addition to expanding exports, PSMA is calling for a comprehensive deregulation policy for the sugar industry. Producers believe that existing government controls complicate the sale of surplus production and constrain market development. Meanwhile, the association expects another substantial sugar surplus to emerge by the end of the 2026/27 crushing season, potentially worsening inventory accumulation and financing challenges for processors.

To address the situation, the association plans to urge the government to accelerate decisions on exports and deregulation. PSMA representatives also intend to hold talks with Pakistan’s deputy prime minister to discuss the industry’s financial difficulties and possible solutions. Sugar mill owners have scheduled a press conference in Lahore for November 16, where they are expected to announce their next steps to protect producers’ interests.

Tags: Pakistan, sugar