Govt Clears Limited Sugar Export Quota Amid Surplus Warning

The federal government has moved ahead with a limited sugar export plan after a high-level committee finalised modalities for sending 200,000 tonnes of surplus sugar abroad. The decision was taken as Pakistan heads into the next crushing season with large stocks still available in the domestic market.

Deputy Prime Minister and Foreign Minister Ishaq Dar chaired the process and directed relevant ministries to quickly complete the remaining formalities. The stated objective is to support sugar mills, sugarcane growers and foreign exchange earnings while also keeping domestic consumers protected from sudden price increases.

The Cabinet Committee for the Export of Surplus Sugar also approved a monitoring committee to keep regular watch over sugar prices. The move signals that the government wants to allow limited exports without creating pressure in the local market, where food inflation and essential commodity prices remain politically sensitive.

The meeting included federal ministers and senior officials linked to national food security, climate change, commerce and provincial departments. Officials are trying to balance the demands of millers with the government’s responsibility to maintain domestic availability and price stability.

Industry representatives argue that the approved quota is far below what is needed. Sector stakeholders say Pakistan had more than 2.6 million tonnes of sugar stocks by the end of August. After estimated domestic consumption until mid-November, the country may still carry a surplus of around 1.25 million tonnes into the new crushing season.

Sugar output for the next season is projected at more than 8 million tonnes, and some stakeholders believe it could reach up to 8.5 million tonnes. They warn that a small export quota may not be enough to ease warehouse pressure or improve liquidity for mills before fresh cane crushing begins.

Millers have sought permission to export at least 1 million tonnes immediately. They argue that without timely exports, mills could face storage constraints and weak cash flow, potentially delaying crushing operations and payments to farmers. Such delays could also put pressure on sugarcane prices at the farm level.

Pakistan Sugar Mills Association Chairman Chaudhry Zaka Ashraf said the association was not invited to the key consultation despite being a major stakeholder. He also raised concern that beet sugar was not included in the export plan, even though it forms part of the overall surplus stock. The coming weeks are now expected to determine whether the government expands the quota or keeps exports tightly restricted.