Sugar Crushing Season Delayed to December
The sugar crushing season will not begin before December this year, after sugar mill owners decided to hold off the new season until they clear a large surplus of unsold sugar. The decision puts pressure on the government to allow exports and announce a deregulation policy for the sector.
The Pakistan Sugar Mills Association (PSMA) took the decision unanimously at a general body meeting held simultaneously in Lahore, Karachi and Islamabad on Wednesday. Mill owners from Punjab, Sindh and Khyber Pakhtunkhwa attended the meeting.
The mills say around 1.1 million metric tonnes of surplus sugar remain in warehouses, even after the government approved the export of 200,000 tonnes. The government has yet to issue permission to export the approved quantity, the association said.
Sugar crushing season held back by surplus stocks
Starting a new crushing season without clearing existing stocks would add to the surplus and place more financial pressure on the industry, the millers argued. Mills would have to buy fresh sugarcane and produce more sugar while their warehouses are already full.
The general body authorised the PSMA executive committee to approach the government with two key demands. The first is immediate permission to export an additional 400,000 metric tonnes of surplus sugar. The second is the announcement of a long-awaited deregulation policy for the sugar sector.
The association said deregulation had become unavoidable, warning that another substantial sugar surplus is expected by the end of the 2026-27 crushing season. It added that delays in government action could lead to further stock accumulation and mounting financial pressure on sugar mills.
The meeting also decided that sugar mill owners would hold a press conference in Lahore on November 16 to announce their future course of action. The association also proposed sending a formal letter to the deputy prime minister, seeking a meeting to discuss the challenges facing the sugar industry.
What the delay means for growers and shoppers
The delay matters well beyond the mills. Sugarcane growers depend on the crushing season for their income, and a late start can leave cut cane waiting at mill gates. Shoppers, meanwhile, watch sugar prices closely, since sugar is a daily essential in almost every Pakistani home.
The surplus itself points to a deeper problem in the sector. Pakistan has produced more sugar than it can sell at home, yet exports need government permission, which has been slow to come. The mills say the system leaves them stuck between full warehouses and unpaid cane growers.
The issue has also drawn the attention of lenders. The World Bank has tied a $600m loan to wheat and sugar reforms, a sign that the sector’s troubles are now part of a wider reform agenda. Punjab has also moved on the farming side, unveiling a new sugarcane variety, FDP-254, for farmers.
Prices already under pressure
Food prices have been a running worry for households this year. Short-term inflation hit 12.31pc in Pakistan, and food prices in Rawalpindi have soared as official controls failed. Sugar is one of the items families notice first when the weekly shop gets dearer.
The mills argue that exports are the quickest way to ease the glut. Selling 400,000 tonnes abroad would clear warehouse space and bring in foreign exchange, they say. Without that, the surplus will keep growing once the new season finally starts.
Growers have their own demands. Flour millers have sought a market-driven wheat policy with targeted subsidy, and the same argument runs through the sugar debate: let the market work, with support aimed at those who need it, rather than controls that leave stocks piling up.
What happens next
The mills will hold their press conference in Lahore on November 16, where they plan to set out their next steps. Much depends on whether the government grants export permission for the approved 200,000 tonnes and agrees to the extra 400,000 tonnes. The proposed meeting with the deputy prime minister will be the next test of whether the two sides can agree before the season slips further.
Frequently asked questions
When will the sugar crushing season start?
Not before December, the Pakistan Sugar Mills Association decided on Wednesday. The mills will not begin crushing the new sugarcane crop until the surplus of unsold sugar is cleared.
How much surplus sugar is there?
Around 1.1 million metric tonnes of surplus sugar remain in warehouses, according to the association. That is after the government approved the export of 200,000 tonnes, for which permission has not yet been issued.
What are the sugar mills demanding?
The mills want immediate permission to export an additional 400,000 metric tonnes of surplus sugar, and the announcement of a deregulation policy for the sugar sector.
Why does the delay matter for shoppers?
Sugar is a daily essential in Pakistani homes. A glut at the mills does not always mean lower shop prices, and delays in the season can disrupt supplies and payments to growers, which feed through to prices later.
What happens on November 16?
Sugar mill owners will hold a press conference in Lahore to announce their future course of action if the government does not act on their demands.
