The Pakistan Sugar Mills Association (PSMA) has decided against starting the new sugarcane crushing season before December, citing 1.1 million metric tonnes of unsold sugar stocks and delays in government approval for exports.

The decision was unanimously approved at a PSMA General Body meeting held simultaneously in Lahore, Karachi, and Islamabad on Wednesday. Sugar mill owners from Punjab, Sindh, and Khyber Pakhtunkhwa participated in the meeting.

Sugar Surplus Reaches 1.1 Million Tonnes

The association said approximately 1.1 million metric tonnes of surplus sugar remain in warehouses despite the government’s approval to export 200,000 tonnes.

However, millers complained that formal permission to ship the approved quantity has not yet been issued.

They warned that starting another crushing season without first selling existing stocks would increase the surplus and create further financial difficulties for sugar mills.

Millers Demand Permission to Export 400,000 Tonnes

The PSMA General Body authorized its Executive Committee to approach the government with two demands: immediate approval for exporting an additional 400,000 metric tonnes of sugar and the announcement of a long-awaited deregulation policy for the industry.

The association argued that deregulation was necessary, particularly as another significant sugar surplus is expected by the end of the 2026-27 crushing season.

It warned that further delays in government decisions could increase unsold inventories and put additional financial pressure on mill owners.

The meeting also decided that sugar mill owners would hold a press conference in Lahore on November 16 to announce their next course of action.

Separately, the association proposed writing to the deputy prime minister to request a meeting on the challenges facing the sugar industry.