Sugar mills seek complete deregulation, permission to export 800,000 tonnes

Profit by Pakistan Today reported that the Pakistan Sugar Mills Association (PSMA) wants the government to lift all controls on the sugar sector and quickly allow exports of another 800,000 tonnes. The association warned that rising surplus stocks could strain storage space and mills' working capital before the next crushing season begins. Its general body repeated a long-held call for market-driven operations, arguing that growers would gain from prices linked to international markets.

The PSMA also said several mills are currently shut, and that deregulation would let them import raw sugar when needed and crush local cane according to market conditions. Without reform, it cautioned, farmers might switch away from sugarcane and Pakistan could face heavy foreign exchange spending on imports. The association welcomed the government's approval to ship 200,000 tonnes of surplus sugar abroad, yet it wants the remaining 800,000 tonnes cleared immediately too.

A PSMA spokesman said the industry has sought since February 2026 to export surplus from the 2025-26 crushing season, which it puts at around 1.25 million tonnes. Mills face extra carrying costs, including bank mark-up, and domestic sugar prices remain below rising production costs. An upcoming crop is expected to add around 1.5 million tonnes, which could bring the total to around 2.75 million tonnes and make crushing hard to sustain from November 2026.