Sugar Mills Urge Govt to Allow Surplus Exports And Earn Extra $500 Million

The Pakistan Sugar Mills Association (PSMA) has urged the federal government to immediately allow export of surplus sugar to generate nearly $500 million in additional foreign exchange, which would support the country’s external account position and ease pressure on the current account deficit.

In a letter addressed to Deputy Prime Minister and Foreign Minister Ishaq Dar, PSMA Chairman Chaudhry Zaka Ashraf stated that Pakistan has produced sugar beyond domestic requirements during the 2025–26 crushing season.

This has resulted in a significant build-up of excess stock.

According to the association, the country currently holds around 7.9 million metric tons of sugar stocks.

After accounting for annual domestic consumption of approximately 6.6 million tons, the industry is left with a surplus of nearly 1.3 million tons. Even after maintaining strategic reserves, an excess of about 750,000 tons is expected.

PSMA argued that this surplus is creating serious liquidity and storage challenges for mill owners, while also affecting timely payments to farmers and bank obligations.

The association added that current market prices remain below production cost due to higher input and sugarcane procurement expenses, putting additional pressure on the sector.

PSMA further added that the federal government has already formed a cabinet-level committee under the deputy prime minister to review the proposal for sugar exports, for which the industry has expressed appreciation.

The association reiterated its request for swift approval of exports. It said that continued stock accumulation could deepen financial strain across the sugar value chain, including mills, growers, and lenders.