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Pakistan's Sugar Glut: Industry Demands Exports Amid Economic Strain

Pakistan's sugar industry is urging the government to allow exports to address a massive production surplus. Total production is nearing 8 million tons against consumption of about 6.6 million, creating a glut. Holding the excess stock is financially unsustainable for mills as domestic prices have fallen below production costs. Exporting the estimated 767,000 tons of surplus could generate hundreds of millions in urgently needed foreign exchange.

Key Points: Pakistan's Sugar Surplus: Industry Urges Export for Forex

  • Projected sugar surplus of 1.32M tons
  • Annual consumption far below production
  • Stocks create financial burden for mills
  • Exports could earn crucial forex
  • Domestic prices fall below production cost
2 min read

Pakistan's sugar glut exposes policy gaps amid economic strain

Pakistan faces a 1.32M ton sugar surplus. Mills urge exports to ease financial strain and earn $400-500M in foreign exchange.

"exporting the surplus sugar could generate between $400 million and $500 million in foreign exchange - The Express Tribune"

Lahore, April 10

Pakistan's sugar industry has urged the government to allow immediate exports of excess production, warning that mounting stocks are becoming economically unsustainable. The Pakistan Sugar Mills Association believes that exporting surplus sugar could provide much-needed relief to both the industry and the country's dwindling foreign exchange reserves, as reported by The Express Tribune.

According to The Express Tribune, a PSMA representative revealed that by mid-November 2025, leftover inventory from the previous season stood at 271,704 metric tons, including both locally produced and imported sugar.

Production during the ongoing crushing season, which began in November 2025, has already reached 7.573 million metric tons as of March 31, 2026, and is expected to touch 7.6 million tons once all mills conclude operations. In addition, seasonal sugar beet output between April and June is projected to contribute another 86,809 metric tons, pushing total production close to 7.958 million tons. However, consumption levels remain significantly lower. Data indicates that annual sugar consumption is expected to rise modestly to 6.638 million tons, factoring in population growth in the country.

This imbalance has resulted in a projected surplus of 1.32 million metric tons. Even after setting aside a strategic reserve equivalent to one month's consumption, an excess of approximately 767,000 tons remains. Industry stakeholders argue that holding such large stocks is financially burdensome, especially as domestic sugar prices have dropped below production costs due to rising sugarcane prices and input expenses, as highlighted by The Express Tribune.

The situation is further aggravated by Pakistan's growing import bill, particularly for oil, amid escalating global prices linked to geopolitical tensions. The PSMA estimates that exporting the surplus sugar could generate between $400 million and $500 million in foreign exchange, as reported by The Express Tribune.

- ANI

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Reader Comments

S
Sarah B
Interesting to see the numbers. A surplus of over 1.3 million tons is massive. Exporting seems like the logical step to earn forex, especially with high oil import bills. But they must ensure it doesn't hurt their own consumers if prices rise later.
A
Arjun K
Our sugar industry also faces similar boom-bust cycles sometimes. Policy gaps on both sides of the border need fixing. Maybe this will lead to cheaper sugar imports for us? But long-term, every country needs self-reliant and balanced agri-planning. 🇮🇳
P
Priya S
The report is detailed, but I feel for the common people there. When production costs are higher than selling price, farmers and mill owners both suffer. Hope the authorities act swiftly. Economic strain anywhere affects the region's stability.
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Vikram M
$400-500 million in forex is not a small amount for their reserves. But this also highlights a deeper issue—over-reliance on a few crops and lack of diversification. India has its lessons too from the past. We should learn from each other's challenges.
K
Karthik V
With all respect, the article focuses on the industry's demand. What about the sugar cane farmers? Are they getting paid properly? Often in such gluts, it's the small farmer who bears the brunt. The policy gap must address the entire chain, not just mills.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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