Sugar trade: just get out of the way!

Business Recorder's commentary says Pakistan has swung from a sugar shortage to a sizeable surplus in about a year. According to the piece, MY26 output is up around 32 percent on last year, retail prices stay well below their December 2025 level, and inventories are heavy. Industry figures suggest end-July stocks exceed 3 MMT, and a further big cane harvest is coming to market.

The piece notes the government is hesitant to approve more exports after the last cycle, in which exports were permitted, domestic prices rose and roughly 0.3 MMT of imports followed. The commentary argues that sugar, a privately produced and internationally traded commodity, should be priced by local output, demand and international prices rather than by administrative decisions on export volumes. It also points out that private mills still need permission to ship surplus abroad while the state tries to sell TCP-imported stock.

The commentary calls for unrestricted commercial imports and exports, so trade can respond to relative prices instead of case-by-case approvals. It suggests protecting low-income households through targeted income support rather than price suppression across the whole economy. It also notes that cane output reached roughly 89 MMT in FY26 and that future gains should come from better varieties and higher yields rather than more acreage.