Mills warn of liquidity crisis over 1.197 million-tonne sugar surplus, seek urgent export approval

Profit reports that the Pakistan Sugar Mills Association has written to Rana Tanveer Hussain, the minister for National Food Security and Research, for a third time. The industry body warns of a liquidity crisis linked to a projected surplus of 1.197 million tonnes, and wants excess stock exported before the 2026-27 crushing period opens on November 15. Stock levels reached 3.171 million tonnes as at July 31, according to figures the FBR and the industry reconciled.

Average monthly consumption of 564,196 tonnes means the country could hold close to 1.2 million tonnes of extra stock when the crushing period starts. Forecasts of another bumper cane harvest, yielding 8 million tonnes of additional sugar, point to an even larger gap against domestic demand. Meanwhile market prices have dropped under production costs even as input and cane purchase expenses rise.

Unsold sugar stuck in mill warehouses has left manufacturers short of cash, threatening loan repayments and payments to cane growers. The association has asked for immediate approval to export 633,000 tonnes, followed by a second phase for the remaining 564,000 tonnes within one month of the season opening.