PSMA demands export of surplus sugar

LAHORE, Mar 30 (APP):Pakistan Sugar Mills Association (PSMA) Monday appealed to the government to allow export of surplus sugar stocks in the country.
Addressing a press conference at a local hotel, the PSMA Chairman Zaka Ashraf explained that sugar industry is the second largest agro-based industry in Pakistan after textiles.
In terms of sugar production, Pakistan is the sixth largest country in the world and this industry provides employment to millions of people while generating direct and indirect annual business activity of more than Rs 1,000 billion in agriculture, transport, allied industries, wholesale and retail markets, he claimed.
Zaka Ashraf added that sugar industry pays approximately Rs 300 billion direct and indirect taxes to federal, provincial, and local governments and provides USD 5 billion worth of import substitution to national economy.
Sugar industry despite being most compliant and documented, he said, is over regulated industry in Pakistan. Though 70 percent of sugar production, which is used in commercial and industrial sectors, is completely deregulated, however, sugar for domestic consumption is still regulated. This includes, among other matters, the determination of ex-mill sugar prices by provincial governments, setting payment timelines, controlling supply and imposing penalties, he maintained.
The PSMA Chairman further stated that sugar industry uses local energy through the utilization of bagasse. “Through our surplus energy production, an allied steel industry has been established, and this excess power generation can also be utilized for other industrial purposes. We believe that the use of ethanol as fuel in vehicles and its blending policies, as adopted in Brazil and India, can strengthen our national energy mix, which currently relies heavily on imported petroleum products costing billions of dollars,” he mentioned.
Although an ethanol blending policy was formulated in Pakistan in 2006 and 2009, he said, it was later abolished due to a negative campaign by oil marketing companies so there is a need to restore it. The potential of 20 percent of bioethanol blending can be achieved for vehicular petroleum consumption in the country as being implemented in the neighboring country.
Zaka Ashraf suggested, “Through an urgent policy intervention of adopting ethanol blending in petrol, we can save billions of dollars on its imports on current high prices and provide relief to the general public.”
Pakistan’s sugar industry can produce 12 million metric tons of sugar annually without any additional investment or increase in capacity. In this way, he said, six million metric tons of sugar can be exported each year. The country can earn USD 04 billion annually from continuous sugar exports, while an additional one billion US dollars can be earned from ethanol exports.
Central Asian states, Afghanistan, and China are large markets for Pakistani white sugar, from which India is benefiting despite Pakistan’s proximity and lower transportation costs. Through the Export Facilitation Scheme and free trade agreements with these countries, white sugar exports can generate better foreign exchange for the national exchequer.
It is a matter of satisfaction that due to good sugarcane prices and timely payments, farmers’ confidence in the industry has been restored. This year, the sugarcane crop has been very good, resulting in a significant increase in sugar production. The details are as follows:
At the beginning of this crushing season, there was a stock of 271,000 tons of sugar. According to data as of March 25, 2026, approximately 7.5 million tons of sugar have been produced so far. Since crushing is still ongoing in some mills, it is highly likely that production will reach 7.7 million tons. Additionally, 100,000 tons of sugar will be obtained from beetroot. Therefore, by the end of this crushing season, the total sugar stock will be 8.071 million tons. Meanwhile, the consumption for 13 months is approximately 7.02 million tons, so there will be a surplus of about 1.05 million tons of sugar this time.
Since the sugar industry is currently facing severe losses due to increased production costs and maintaining surplus sugar stocks, the government should allow sugar exports as soon as possible so that valuable foreign exchange can be earned for the country.