Pakistan Sugar Mills Association Calls for Complete Deregulation of Sugar Sector
The Pakistan Sugar Mills Association (PSMA) has renewed its call for the full deregulation of the sugar sector, arguing that such measures would primarily benefit farmers by allowing them to obtain in
The Pakistan Sugar Mills Association (PSMA) has renewed its call for the full deregulation of the sugar sector, arguing that such measures would primarily benefit farmers by allowing them to obtain international market rates for their products.
Current Status of Sugar Sector Deregulation
On September 25, 2023, the PSMA issued a press release emphasizing the urgency of this request. They noted that farmers' organizations across the country are echoing the demand for deregulation. A spokesperson for the PSMA highlighted that the sugar industry has been advocating for deregulation since February 2026, specifically urging the government to expedite the export of surplus sugar generated at the conclusion of the 2025-26 crushing season.
Surplus Sugar and Export Potential
The association brought attention to a concerning national surplus of 1.25 million tonnes of sugar, calling for immediate action to address this issue through exports. The PSMA believes that exporting one million tonnes of surplus sugar would protect farmers' interests while also generating essential foreign exchange for the country. The organization is optimistic that following the government's recent decision to export 200,000 tonnes of sugar, swift steps will be undertaken to facilitate the export of the remaining 800,000 tonnes.
Anticipated Challenges Ahead
With less than two months until the start of the new crushing season, the PSMA predicts that the forthcoming sugarcane harvest could lead to an additional surplus of approximately 1.5 million tonnes of sugar. Given the existing surplus of 1.25 million tonnes, there could be inadequate storage capacity for the new season's production. The PSMA cautioned that limited exports of surplus sugar and the high costs of maintaining existing stockpiles may impede sugar mills' ability to sustain continuous crushing operations during the upcoming season, which is set to commence in November 2026.
