Sugar mill owners have intensified efforts to secure government approval for the export of surplus sugar, with the Pakistan Sugar Mills Association (PSMA) formally urging the government to allow overseas sales of excess stocks.
In a letter addressed to Deputy Prime Minister and Foreign Minister Ishaq Dar, PSMA Chairman Zaka Ashraf highlighted the country's sugar surplus and called for the early convening of a cabinet committee meeting to consider export proposals.
According to the association, Pakistan currently has approximately 1.3 million metric tons of surplus sugar. The letter states that even after maintaining one month of strategic reserves, around 760,000 tons of excess sugar would remain available for export. The association further noted that estimates indicate a surplus of nearly 750,000 tons after accounting for domestic requirements and reserve stocks.
The PSMA welcomed the government's decision to establish a cabinet committee to review the issue of surplus sugar exports and stressed that sugar exceeding national consumption needs should be allowed to enter international markets.
The association argued that the sugar industry produced more sugar than the country's domestic requirements during the 2025-26 crushing season, creating substantial inventories that have placed financial pressure on mill owners.
In the letter, the association maintained that Pakistan could earn approximately $500 million in foreign exchange through the export of surplus sugar. It also pointed out that current sugar prices are below production costs, making it increasingly difficult for mills to sustain operations.
Chairman Zaka Ashraf stated that the industry is facing liquidity constraints due to large sugar stocks remaining unsold. He warned that storage pressures could increase further, as another record sugarcane crop is expected in the upcoming crushing season.
The PSMA chief requested the government to convene the cabinet committee meeting at the earliest opportunity and urged authorities to allow a delegation of the Sugar Mills Association to participate in discussions regarding the proposed export policy.
The association expressed confidence that timely approval of sugar exports would help stabilize the industry, reduce excess inventories and generate valuable foreign exchange for the country.
Reporter: Waqas Azeem