Pakistan’s sugar industry seeks approval to export 585 thsd tons of surplus sugar

The Pakistan Sugar Mills Association (PSMA) has urged the government to immediately approve the export of 585 thsd tons of surplus sugar. The industry says record inventories and another expected bumper sugarcane crop could put significant pressure on mills and affect their ability to make timely payments to farmers.

According to the association, Pakistan held around 3.4 mln tons of sugar stocks as of July 15, 2026. With average monthly domestic consumption estimated at about 567 thsd tons, the country is still expected to have a surplus of roughly 1.16 mln tons by the start of the next crushing season on November 15.

The situation could become even more challenging as another strong sugarcane harvest is expected. PSMA estimates sugar production in the 2026/27 season could reach around 8 mln tons, well above domestic demand. The association warns that without exports, mills may struggle to purchase additional sugarcane and offer competitive prices to growers.

Industry representatives say timely payments to farmers over the past two years have encouraged the adoption of improved sugarcane varieties, leading to higher yields and better sugar recovery. However, large unsold inventories and domestic sugar prices that remain below production costs are creating liquidity constraints and making it more difficult for mills to service bank loans.

PSMA is therefore asking the government not only to approve the immediate export of 585 thsd tons of sugar but also to consider allowing additional exports from strategic reserve stocks within a month after the next crushing season begins. According to the association, such measures would help stabilise the domestic market, support sugarcane growers and prevent an excessive oversupply of sugar.

Tags: sugar, Pakistan