Sugar Mills Delay New Crushing Season Over Unsold Stock and Export Delays

The Pakistan Sugar Mills Association (PSMA) has decided to postpone the start of the new sugarcane crushing season until December, pointing to a substantial surplus of unsold sugar and delays in securing government approval for exports. The decision was taken unanimously at a PSMA General Body meeting held simultaneously in Lahore, Karachi and Islamabad on Wednesday, with mill owners from Punjab, Sindh and Khyber Pakhtunkhwa in attendance.

According to the association, around 1.1 million metric tonnes of surplus sugar remain in warehouses, even after the government approved the export of 200,000 tonnes. Millers said, however, that the government has yet to issue the actual permission to export the approved quantity. They argued that beginning a new crushing season without clearing existing stocks would further inflate the surplus and add to the financial pressure on the industry.

The general body authorised the PSMA Executive Committee to approach the government with two key demands: immediate permission to export an additional 400,000 metric tonnes of surplus sugar, and the announcement of a long-awaited deregulation policy for the sugar sector. The association described deregulation as unavoidable, warning that another substantial surplus is expected by the end of the 2026-27 crushing season.

The PSMA cautioned that continued delays in government action could lead to further stock accumulation and mounting financial strain on sugar mills. The meeting also decided that mill owners would hold a press conference in Lahore on November 16 to announce their future course of action.

In addition, the association proposed sending a formal letter to the deputy prime minister seeking a meeting to discuss the challenges facing the sugar industry. The developments come as the sector waits for policy clarity on exports and deregulation, both of which millers say are critical to managing inventories and financial stability.

The postponement of the crushing season underscores the pressure building across the sugar supply chain, with industry representatives urging faster government decisions on export permissions and structural reforms.