LAHORE: The federal government has moved ahead with its sugar export plan. Deputy Prime Minister and Foreign Minister Ishaq Dar finalised arrangements to export 200,000 tonnes on Tuesday.
The Cabinet Committee for the Export of Surplus Sugar approved the export plan. It also formed a monitoring committee to regularly check domestic sugar prices, The News reported.
Dar directed the relevant ministries to complete pending formalities without delay. He said the move would support sugar mills and sugarcane farmers, increase foreign exchange earnings and protect consumers.
The meeting included the ministers for national food security and climate change, Special Assistant to the Prime Minister Tariq Bajwa, and senior officials from commerce and food security departments. Representatives of federal and provincial departments also attended.
Sugar Industry Seeks Larger Export Quota
Pakistan is approaching the 2026-27 crushing season with a large sugar surplus.
A sugar industry source told The News that the country held more than 2.6 million tonnes of sugar as of August 31, 2026.
Domestic demand is expected to reach around 1.4 million tonnes by November 15. Even after meeting that demand, Pakistan could carry a surplus of about 1.25 million tonnes into the new season.
The next season’s sugar output could exceed 8 million tonnes and reach 8.5 million tonnes.
Against this backdrop, the industry considers the approved export quota too small. It wants the government to allow at least 1 million tonnes of immediate exports.
The source warned that delays could force mills to postpone crushing. Limited storage space and cash shortages could leave them unable to start on time.
That could also push sugarcane prices down.
“This would be disastrous for the farmer, who is already a victim of depressed wheat prices and cannot afford a second consecutive blow to his major cash crop,” the source said.
The source urged the government to approve larger exports quickly. It also called for measures to ensure that growers receive the benefits.
Millers Warn of Financial Pressure
A veteran sugar miller also questioned the 200,000-tonne quota. He said repeated announcements had made it sound as if the government had approved exports of 2 million tonnes.
He questioned how exports could help at this stage, given the financial losses mills had already suffered.
Millers say small and delayed quotas do not resolve the surplus or cash-flow problems. Full warehouses leave mills struggling to pay farmers on time and prepare for the next crushing season.
Meanwhile, the government wants to support mills and growers while preventing domestic prices from rising. The new monitoring committee will oversee sugar prices during the export process.
Industry stakeholders say the coming weeks will be crucial. Without a larger quota before mid-November, surplus stocks could spill into the new season.
They warn that this could lower ex-mill prices, delay payments to sugarcane farmers and hurt the industry.
PSMA Chairman Says Association Was Not Invited
Pakistan Sugar Mills Association (PSMA) Chairman Chaudhry Zaka Ashraf said the government did not invite the association to the consultation.
He said the association represents a major stakeholder in the sugar sector.
Ashraf also questioned why the export plan excludes beet sugar, even though it forms part of the country’s surplus stocks.
