The Pakistan Sugar Mills Association (PSMA) has announced that no final date has been determined for the start of the upcoming sugar crushing season, following deliberations in a meeting of the Sugar Advisory Board (SAB).
In a statement issued after the meeting, the PSMA confirmed that several mill owners and industry representatives participated in discussions regarding the country’s sugar supply situation and crushing timelines.
Adequate Sugar Stocks Until Mid-December
Mill owners informed the Board that sufficient sugar stocks are available across the country and argued that there is no need to begin crushing operations on November 15, the date earlier suggested by authorities.
They added that each mill would independently decide when to commence operations once existing inventory levels decrease, emphasizing that there is no justification for the federal government to impose a uniform start date.
According to the association, current sugar reserves are adequate to meet national demand until mid-December, dismissing concerns about potential shortages.
Risks of Premature Crushing
The PSMA cautioned that an early start to the crushing season could lead to the processing of immature sugarcane with lower sucrose content, potentially reducing overall sugar output by around 300,000 tonnes. Such a scenario, they warned, could inflict billions of rupees in economic losses on both the sugar sector and the broader economy.
Mill owners also noted that starting production early could strain cash flows and increase financial burdens, as mills would need to sustain larger stockpiles for a longer period. This situation, they added, could also impact sugarcane farmers, since mills facing liquidity issues might struggle to offer competitive procurement prices for their crops.
Concerns Over Sugar Imports and Market Disruptions
The PSMA further criticized the federal government for the unnecessary import of 325,000 tonnes of sugar, asserting that domestic supply was stable prior to the imports. The association claimed that the closure of the Federal Board of Revenue (FBR) portal for imported sugar sales disrupted the supply chain and contributed to price fluctuations in the local market.
“The industry was neither the beneficiary nor responsible for the price hike,” the PSMA clarified, stressing that it has now resumed supply from mills at the notified ex-mill rates after the issue was identified and addressed.
Next Steps
The association reiterated its commitment to maintaining market stability and ensuring timely availability of sugar nationwide. It urged the government to avoid arbitrary interventions and instead allow market dynamics and crop maturity levels to guide the start of the crushing season.
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