PSMA claims 12 sugar mills shut warns of more closures

ISLAMABAD - The Pakistan Sugar Mills Association (PSMA) - North Zone has claimed that at least 12 sugar mills across the country have already shut down due to losses and many others are on the verge of closure, demanding that the government allow export of another 0.8 million metric tons (MMT) of sugar. The sugar sector continues to face financial crunch, exacerbated by delays in policy decisions by the government. During this period, the sugar industry has incurred losses amounting to Rs 98 billion, spokesman Pakistan Sugar Mills Association-North Zone said here Sunday. Pakistan Sugar Mills Association-North Zone, citing weekly data from the Pakistan Bureau of Statistics, has stated that sugar prices have declined by up to 25 percent over the past year. Shadab's maiden ODI century sends Pakistan into Tri-series final Notably, the average sugar price was Rs89 per kg in CY2022, Rs130 per kg in CY2023, and Rs143 per kg in CY2024.The four-year average price from 2022 to 2025 was Rs134.75 per kg, which was lower than the average price of Rs 155-160 per kg recorded during the January to 25 October 2026 period. The spokesman said since closure of crushing season 2025-26, PSMA has time and again indicated availability of huge surplus of 1.3MMT in country but repeated requests of sugar industry for timely export of surplus sugar have been ignored by government which has put industry in serious financial crisis. Mikayil stars as Robson lift LSC Polo in Pink title Sugar industry may not be in a position to timely start upcoming 2026-27 crushing season due to huge stockpile and pay better prices to sugarcane farmers like in previous years. It will be disastrous for sugarcane farmers and our agricultural economy. The sugar surplus of 1.3 million metric tons caused huge losses to the sugar industry. Due to glut and resultant depressed sugar prices, it remained unable to recover its cost of production or any profit margin. Notwithstanding sugar industry had to incur carrying costs on surplus stocks, in the shape of financial charges on bank loans. While at the same time sugar prices in Pakistan are lowest in the world, inspite of highest sales tax rates. ITF J-30 Lahore Ali Embroidery Mills Junior Tennis commences today Unless at least 1.00MMT of surplus sugar is exported, the above situation is more likely to worsen further when new sugar of coming crushing season will arrive. In forthcoming crushing season which is hardly a month away another record sugar production of approx. 8.50MMT is expected. Sugar industry appealed to the federal government to immediately grant 0.8MMT sugar export permission in addition to permission of 0.2MMT already granted. Moreover, government should completely de-regulate sugar sector enabling it to work on free market principles. Otherwise not only sugar industry and farmers would suffer but the country might regularly be importing sugar for domestic use, by spending much needed foreign exchange, instead of earning it through sugar exports. DG PSB honours Rizwan Aftab for contributions to sports development