# Pakistan sugar industry surplus and export crisis

> Live situation record from CLSTR: https://clstr.news/situations/pakistan-sugar-industry-surplus-and-export-crisis
> Updated: 2026-10-26T08:49:31.000Z. Sources: 3. Developments: 2.

The Pakistan sugar industry is experiencing significant financial distress characterized by a 1.3 million tonne surplus and a domestic price decline of up to 25% over the past year. The Pakistan Sugar Mills Association (PSMA) reported losses totaling Rs98 billion (US$1.03 billion), leading to the shutdown of at least 12 mills.

To mitigate mounting storage and financing costs, the PSMA North Zone requested approval to export 800,000 tonnes of surplus sugar. In response to these needs, the State Bank of Pakistan directed banks to process export cases for a 200,000-metric-tonne sugar quota for eligible mills. These exports must be conducted via sea routes against advance payments or sight letters of credit.

Efforts to manage surplus stocks through the Trading Corporation of Pakistan (TCP) faced challenges when a tender for 107,739 metric tonnes of imported white refined sugar failed to attract bids. This was attributed to a reserve price of approximately $660 per tonne, which was significantly higher than international market rates of $505 to $515 per tonne.

In the Sindh province, the Sindh Abadgar Board has called for the resumption of official notifications for the sugarcane crushing season and the fixing of purchase prices to protect growers.

## Claims

- Pakistan's sugar industry reported losses of Rs98 billion (US$1.03 billion). (single source)
- Pakistan has a sugar surplus of 1.3 million tonnes. (single source)
- At least 12 sugar mills in Pakistan have shut down due to losses. (single source)
- The PSMA North Zone is seeking approval to export 800,000 tonnes of sugar. (single source)
- The Sindh Abadgar Board requested the resumption of official notifications for the sugarcane crushing season. (single source)
- Chandrashekhar Azad requested the sugarcane price in Uttar Pradesh be set at ₹600 per quintal. (single source)
- The Sindh Abadgar Board urged the Sindh Chief Minister to resume notifying the sugarcane crushing season and fixing buying prices. (single source)
- Chandrashekhar Azad requested the Uttar Pradesh government to fix the sugarcane price at ₹600 per quintal. (single source)

## Timeline

### 2026-10-26: Sugar industry faces crisis in Pakistan and India

Sugar industries in Pakistan and India face instability as Pakistani mills report $1.03B in losses amid surpluses, while Indian MPs demand higher sugarcane prices to offset rising production costs.

3 sources. https://clstr.news/cluster/sugar-industry-faces-crisis-in-pakistan-and-india

### 2026-10-03: Pakistan authorizes 200,000-tonne sugar export quota

Pakistan has authorized the export of 200,000 tonnes of sugar via specific mill quotas, though a separate state-led tender for imported sugar failed due to reserve prices exceeding global market rates.

2 sources. https://clstr.news/cluster/pakistan-authorizes-200000-tonne-sugar-export-quota

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Cite as: Pakistan sugar industry surplus and export crisis. CLSTR, https://clstr.news/situations/pakistan-sugar-industry-surplus-and-export-crisis