ISLAMABAD: The Pakistan Sugar Mills Association (PSMA) has urged the federal government to immediately allow the export of surplus sugar, warning that delays could trigger a crisis for mills and farmers ahead of the crushing season.
In a statement issued the other day, the association said that this year’s production had reached a record 7.7 million tons — nearly one million tons above the country’s domestic requirement. It noted that more than seven million tons of sugar remain piled up in warehouses, with certified stock valued at approximately $700 million awaiting export clearance.
The PSMA maintained that the government had earlier assured mill owners of export permission, but the approval has yet to materialize. “It takes five months to export such a large volume, and further delay will severely impact the industry and growers,” the statement read, appealing to Prime Minister Shehbaz Sharif and provincial chief ministers for urgent intervention.
Industry insiders argue that the cartel-like power of sugar mill owners has historically allowed them to dictate policy, often at the expense of consumers. Past export approvals have led to shortages and sharp price hikes in the domestic market, fueling criticism that the sector prioritizes profit over public interest.
Analysts caution that while surplus stocks present an opportunity to earn foreign exchange, unchecked exports risk repeating the cycle of re-importing sugar at higher prices — a pattern that has burdened households and deepened inflationary pressures in previous years.
The government now faces a familiar dilemma: balancing the demands of one of Pakistan’s most entrenched industrial lobbies against the need to protect consumers from another round of price shocks.
