LAHORE: Pakistan Sugar Mills Association (PSMA) North Zone, citing weekly data from the Pakistan Bureau of Statistics, has stated that sugar prices have declined by up to 25 percent over the past year.
The sugar sector continues to face financial crunch, exacerbated by delays in policy decisions by the government. During this period, the sugar industry has incurred losses amounting to 98 billion rupees.
In a statement on Sunday a PSMA-NZ spokesman said since closure of Crushing Season 2025-26, PSMA has time and again indicated availability of huge surplus of 1.3MMT in the country but repeated requests of sugar industry for timely export of surplus sugar have been ignored by the government which has put the industry in serious financial crisis.
At least 12 sugar mills across the country have already shut down due to losses and many others are on the verge of closing down. Sugar industry may not be in a position to timely start upcoming 2026-27 crushing season due to huge stockpile and pay better prices to sugarcane farmers like in previous years. It will be disastrous for sugarcane farmers and our agricultural economy.
The sugar surplus of 1.3 Million Metric Tons caused huge losses to the sugar industry. Due to glut and resultant depressed sugar prices, it remained unable to recover its cost of production or any profit margin. Notwithstanding sugar industry had to incur carrying costs on surplus stocks, in the shape of financial charges on bank loans. While at the same time sugar prices in Pakistan are lowest in the world, inspite of highest sales tax rates, claimed the spokesman.
Unless at least 1.00MMT of surplus sugar is exported, the above situation is more likely to worsen further when new sugar of coming crushing season will arrive. In forthcoming crushing season which is hardly a month away another record sugar production of approx. 8.50MMT is expected.
Sugar industry earnestly appealed to the Federal Government to immediately grant 0.8MMT sugar export permission in addition to permission of 0.2MMT already granted. Moreover government should completely de-regulate sugar sector enabling it to work on free market principles. Otherwise not only the sugar industry and farmers would suffer but the country might regularly be importing sugar for domestic use, by spending much needed foreign exchange, instead of earning it through sugar exports, statement concluded.
Copyright Business Recorder, 2026