ISLAMABAD – The Pakistan Sugar Mills Association (PSMA) has sought government approval for additional sugar exports, citing a surplus of over 1.08 million tons at the start of the new crushing season.
The appeal was made on Thursday during a meeting of the Sugar Advisory Council chaired by Federal Minister for Industries and Production Rana Tanveer Hussain.
The government advised the industry to meet the current export quota of 790,000 tonnes before further approvals are considered. The PSMA highlighted China’s annual import demand of 6 million tons, and recommended that the government support exports to China through government-to-government (G2G) or government-to-business (G2B) channels.
Key stakeholders, including the PSMA, joined the SAB meeting to review sugar stock levels, the upcoming crushing season, market prices, cane rates, global conditions and production costs.
The Minister directed the PSMA to meet the export quota of 790,000 tons during the three-month period beginning October 8, 2024, while maintaining stable domestic prices to avoid previous consumer problems. Records show that only 186,934 tons of the quota were exported, leaving 603,066 tons unused.
PSMA representatives announced a sugar surplus of more than 1.7 million tons this year and called for increased exports. Earlier, the government allowed PSMA to export 150,000 tons in June 2024, increasing by 100,000 tons in August, with an additional 40,000 tons to Tajikistan through government conditions. On October 8, 2024, an additional 500,000 tons were approved to be exported.
PSMA representatives announced an overall sugar surplus of more than 1.7 million tons this year and called for increased exports. Previously, the government allowed PSMA to export 150,000 tons in June 2024, later expanding this quota by 100,000 tons in August and allowing an additional 40,000 tons to be exported to Tajikistan on a government-to-government basis. On October 8, 2024, the government also allowed the industry to export 500,000 tons.
According to the sugar report issued by the Sugar Cane Commissioner, domestic consumption reached 6.2 million tons during the past 11 months, while exports amounted to 186,934 tons, with an average monthly use of 545,000 tons.
During the 2023-2024 crushing season, Pakistan produced a total of 6.843 million tons of sugar, of which 4.37 million tons were in Punjab, 2.022 million tons in Sindh, and 447 thousand tons in Khyber Pakhtunkhwa. In addition, 823,000 tons of carryover stock was reported, of which 517,000 tons were in Punjab, 191,000 tons in Sindh, and 115,000 tons in Khyber Pakhtunkhwa, for a total of 7.664 million tons.
The council set November 21, 2024 as the start date for the new crushing season, warning mills that failure to comply could lead to serious penalties, including cancellation of export permits. Minister Hussein also instructed PSMA members to settle any payments owed to farmers before the start of the new season.
In June, the PSMA proposed exports of 1 million tons in the first phase, anticipating $650-700 million in foreign exchange, with an additional 0.6 million tons in two phases. Officials pointed out that the price of sugarcane last year was Rs 350 per 40 kg, and it rose to Rs 450 in 2023-24. They estimated current production costs at Rs 170 per kg, while retail prices are around Rs 140 per kg, among the lowest in the world.
The meeting also reported a recent decline in wholesale sugar prices, which have now reached Rs 6,400 per 50 kg bag, the lowest in two years. PSMA officials confirmed that domestic production costs are about $503 per ton, while international prices as of November 6, 2024, stand at $562 per ton. They said the export permit would benefit Pakistani industry and economy.
The meeting revealed that 85% of the sugar produced is used industrially and the remaining 15% is for local consumption. Sugar is subject to an 18% general sales tax.
