The Pakistan Sugar Mills Association (PSMA) has urged the federal government to approve the export of an additional 600,000 metric tons of sugar, arguing that Pakistan has ample surplus stocks to meet domestic demand while generating an estimated $575 million in foreign exchange through exports.
In a letter addressed to the Federal Minister for National Food Security, the association requested immediate approval for the proposed exports, stating that the government had previously assured the industry that surplus sugar would be allowed for export but the commitment has yet to be implemented.
Sugar Mills Cite Large Surplus Stocks
According to the PSMA, Pakistan ended the current crushing season with 7.967 million metric tons of sugar stocks.
The association said that after accounting for domestic consumption, the country still has a surplus of approximately 1.181 million metric tons, leaving sufficient inventories to facilitate exports without disrupting local supply.
The industry believes that exporting a portion of the surplus would help balance the domestic market while maintaining adequate sugar availability for consumers throughout the year.
Industry Seeks 600,000-Ton Export Approval
The association requested the government to approve the remaining 550,000 metric tons of sugar exports that were previously proposed and authorize an additional quantity, bringing the total export request to 600,000 metric tons.
According to the PSMA, allowing these exports would generate around $575 million in foreign exchange, providing much-needed support to Pakistan’s external account at a time when the country continues efforts to strengthen its foreign exchange reserves.
The association maintained that exporting surplus sugar would not compromise domestic food security, given the significant carryover stocks currently available.
Strong Sugarcane Crop Expected Next Season
The sugar industry also highlighted encouraging prospects for the upcoming crushing season.
According to the PSMA, improved and timely payments to sugarcane growers have encouraged farmers to cultivate higher-quality sugarcane varieties, which is expected to boost production.
The association projects that Pakistan’s sugar production could reach around 8 million metric tons during the next crushing season, further increasing the country’s exportable surplus.
The industry believes the expected rise in production will strengthen domestic supply while creating additional opportunities to expand agricultural exports.
Sugar Mills Say Prices Are Below Production Cost
The association argued that current domestic sugar prices have fallen below the industry’s production costs, placing financial pressure on sugar mills.
According to the PSMA, continued low prices have affected the financial sustainability of the sector and reduced liquidity available to mills.
The industry believes that allowing exports would help stabilize domestic prices, improve cash flows, and enable mills to make timely payments to sugarcane farmers.
The association added that stronger financial conditions for sugar mills would ultimately benefit growers by ensuring prompt procurement and settlement of sugarcane payments.
Government to Review Export Request
The request comes as the government continues to balance domestic food security concerns with opportunities to increase exports and earn foreign exchange.
Authorities have traditionally adopted a cautious approach toward sugar exports to avoid shortages and prevent sharp increases in retail prices.
The federal government is expected to review the industry’s proposal before making a final decision on whether to permit the additional sugar exports.
If approved, the move could support Pakistan’s export earnings, ease surplus inventories, and provide financial relief to both sugar mills and sugarcane farmers ahead of the next crushing season.