Deputy Prime Minister/Foreign Minister Senator Mohammad Ishaq Dar on Tuesday finalised modalities for sugar exports already announced by the federal government. A meeting of the Cabinet Committee for the Export of Surplus Sugar finalised modalities for 0.2 million tons of sugar export and approved a monitoring committee for keeping regular check on sugar prices. Dar directed all concerned ministries to expedite the process and complete pending formalities immediately in order to support the sugar industry, sugarcane farmers and boost foreign exchange earnings while protecting domestic consumers.
The meeting was attended by ministers for National Food Security, Climate Change, SAPM Tariq Bajwa, secretaries Commerce, National Food Security and Research and other relevant stakeholders from federal and provincial departments. The move comes at a time when Pakistan is heading into the 2026-27 crushing season with a crisis of plenty. Commenting on the development after the meeting, a sugar sector insider said that as of August 31, 2026, the country was sitting on stocks of over 2.6 million tons.
Even after meeting domestic demand of around 1.4 million tons until November 15, Pakistan will still carry a surplus of approximately 1.25 million tons into the new season. On top of that, sugar output for the next season is projected at over 8 to 8.5 million tons. Against this backdrop, the government's approval of only 0.2 million tons for export is being seen as negligible and an inadequate response to an impending crisis, he added.
The industry has termed this quota insufficient and is seeking permission for at least 1 million tons for immediate export. The insider warned that if timely exports were not allowed, mills will be forced to delay crushing due to lack of storage and liquidity, which will inevitably lead to a crash in sugarcane prices. "This would be disastrous for the farmer, who is already a victim of depressed wheat prices and cannot afford a second consecutive blow to his major cash crop." He said the government must act swiftly and proactively to allow substantial exports without delay and ensure that the benefits reach the growers, otherwise next year will be the worst ever for sugarcane growers in particular and for agriculture in general.
Echoing the concern, a veteran sugar miller said 2 million tons export had been repeated so many times that it feels as if permission for two million tons had been given. He questioned what benefit sugar export will bring now when mills had already suffered heavy financial losses. The millers argue that delayed and small export quotas fail to solve the core problem of surplus stocks and cash flow.
With warehouses full, mills are unable to pay farmers on time and cannot prepare for the new crushing season. The government, on the other hand, is trying to balance two objectives - supporting the industry and farmers through exports and protecting domestic consumers from price hikes through a monitoring committee. Stakeholders say the coming weeks will be critical.
According to them, if a larger export quota is not allowed before mid-November, the surplus will spill over into the new season, creating a glut that could depress ex-mill prices, delay cane payments and hurt both industry and growers. Meanwhile, Chairman Pakistan Sugar Mills Association (PSMA) Ch. Zaka Ashraf said that the association - the major stakeholder - was not invited to the important consultation.
He also pointed out that beet sugar was not being included in the export plan, despite being part of the overall surplus stock.