PSMA seeks export of 400,000 MT of surplus sugar, deregulation

LAHORE: The Pakistan Sugar Mills Association (PSMA) has called for the immediate export of 400,000 metric tonnes of surplus sugar and the announcement of a long-awaited deregulation policy, warning that mills may not be able to commence the 2026-27 crushing season before December due to massive unsold stocks.

The demand was raised at a General Body meeting of the PSMA held simultaneously in Lahore, Karachi and Islamabad on Wednesday, with a large number of sugar mill owners from Punjab, Sindh and Khyber Pakhtunkhwa participating.

According to a PSMA spokesman, participants expressed serious concern over the government’s failure to allow the export of the agreed-upon sugar quota. Despite approval for the export of 200,000 metric tonnes, approximately 1.1 million metric tonnes of surplus sugar stocks remain available in the country.

The mill owners maintained that the existing stock position had made it financially difficult for mills to begin crushing operations. They unanimously observed that the 2026-27 crushing season could not commence before December under the prevailing circumstances.

The General Body authorised the PSMA Executive Committee to approach the government at the appropriate level and press for permission to export an additional 400,000 metric tonnes of surplus sugar, besides securing the long-awaited deregulation policy for the sugar sector.

The meeting stressed that the announcement of a comprehensive deregulation policy had become imperative, particularly as another substantial sugar surplus was expected by the end of the 2026-27 crushing season. It warned that any further delay in policy decisions could lead to continued accumulation of stocks and intensify financial pressures on the industry.

The General Body also authorised the association to actively engage with the government on other pending issues concerning the sugar sector.

The association expressed hope that the government would address its concerns at the earliest in the broader interests of the sugar industry, growers and the national economy.

It was also decided that sugar mill owners would hold a press conference in Lahore on November 16 to announce their future course of action.

Furthermore, the meeting proposed that the PSMA write a formal letter to the Deputy Prime Minister, seeking an appointment to brief him on the challenges confronting the sugar industry and discuss possible solutions.

Copyright Business Recorder, 2026