Mills demand sugar export

The Pakistan Sugar Mills Association (PSMA) has appealed to the government to immediately export the surplus sugar produced during the current crushing season 2025-26 in order to boost the country's foreign exchange reserves. A spokesperson for the association stated that as of November 15, 2025, the carry-forward stock from the previous season stood at 271,704 metric tons, comprising 117,541 metric tons of local sugar and 154,163 metric tons of imported sugar. According to data from the Federal Board of Revenue (FBR) dated March 31, 2026, a total of 7.573 million metric tons of sugar has been produced in the ongoing crushing season that began in November 2025. This figure is expected to reach 7.6 million tons once the remaining mills complete their processing. In addition, an average of 86,809 metric tons of sugar from sugar beet, based on the previous two years, will also be produced between April and June 2026. Combining all these quantities, total sugar production will reach 7.958 million tons. According to the FBR's data, the country's annual sugar supply between November 16, 2024 and November 15, 2025 was 6.476 million tons, translating into average monthly consumption of 539,662 tons. Taking into account a population growth rate of 2.5%, the annual sugar consumption is projected to reach 6.638 million tons next year. "This indicates a surplus stock of 1.320 million metric tons. Even after maintaining an additional one-month strategic reserve, there will still be a surplus of 767,000 tons," the spokesperson said. Currently, according to millers, the sugar industry is facing significant challenges in maintaining these excessive stocks amid low demand. Sugar prices are much lower than production costs, primarily due to the continuous increase in sugarcane prices and other production inputs, resulting in losses to the industry. Owing to the Iran-US conflict, global oil prices are soaring and Pakistan is spending a substantial amount of foreign exchange on oil imports to meet domestic needs. In this situation, the spokesperson stressed, the government should export 767,000 tons of surplus sugar to earn between $400 million and $500 million.