Sugar industry reiterates demand for complete deregulation

LAHORE, Sep 25 (APP): The Pakistan Sugar Mills Association (PSMA) has reiterated its demand for complete deregulation of the sugar sector, saying that free-market operations would primarily benefit farmers by enabling them to receive international market rates for their produce.

According to a press release issued by the PSMA here on Friday, the PSMA said the time had come to fully deregulate the sugar sector, adding that farmers’ organisations across the country were also demanding deregulation.

A PSMA spokesman said the sugar industry had been consistently requesting since February 2026 that surplus sugar produced at the end of the 2025-26 crushing season be exported immediately.

Through official meetings, letters and press releases, the association had urged the government to address the country’s sugar surplus of 1.25 million tonnes, it said.

The PSMA said exporting one million tonnes of surplus sugar could safeguard the interests of farmers while also generating much-needed foreign exchange for the country.

The association expressed hope that after the government’s decision to export 200,000 tonnes of sugar, early steps would be taken to export the remaining 800,000 tonnes as well.

The PSMA said less than two months remained before the start of the new crushing season. According to its estimates, the upcoming sugarcane crop could result in surplus production of around 1.5 million tonnes of sugar.

With an existing surplus of 1.25 million tonnes already in stock, there would be insufficient storage capacity for sugar produced during the new season, it added.

The association further said that low exports of surplus stocks and the extraordinary costs associated with carrying over existing stocks would make it extremely difficult for mills to maintain continuity of crushing operations during the season commencing in November 2026.