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Pakistan’s sugar industry has rejected the federal government’s decision to allow exports of 200,000 tonnes of sugar, arguing that the quota is insufficient given current stocks and expected production in the 2026-27 crushing season.
The Pakistan Sugar Mills Association (PSMA) said all industry representatives attending Monday’s Sugar Advisory Board meeting opposed the export decision.
The representatives also criticised the Ministry of National Food Security, alleging that it disregarded data submitted by sugar mills and did not adequately consider the industry’s position.
According to PSMA, Pakistan held more than 2.6 million tonnes of sugar stocks as of August 31, 2026. With average monthly domestic consumption estimated at 560,096 tonnes, the industry calculated that about 1.4 million tonnes would be needed to meet domestic demand through November 15.
Based on those figures, the association expects Pakistan to enter the 2026-27 crushing season with a sugar surplus of about 1.25 million tonnes. At current international market prices, PSMA said the surplus could generate export earnings of between $600 million and $700 million.
The industry also expects another record sugarcane crop during the upcoming crushing season, with sugar production projected to exceed 8 million tonnes.
Industry representatives said the approved quota was inadequate and called on the government to immediately allow exports of at least 1 million tonnes. They said higher exports would help protect sugarcane growers and sugar mills from financial losses while generating foreign exchange for Pakistan.
PSMA members also alleged that Federal Board of Revenue (FBR) portals were shut down to facilitate sales of government-imported sugar, contributing to higher sugar prices. According to the representatives, the portals were reopened after sugar prices had declined.
The sugar industry has also called for complete deregulation of the sector, saying it should be treated along the lines of the sugarcane sector.
PSMA called for complete deregulation of the sector to improve industry flexibility.
More details: https://www.foodbusinessmea.com/psma-rejects-200000-ton-export-quota-seeks-1m-tons/