KARACHI: A senior member of the Pakistan Sugar Mills Association (PSMA) has urged the government to allow exports of up to 1.2 million tonnes of surplus sugar to India, saying the move could ease stock pressure, improve mill liquidity and generate foreign exchange up to $600 million.
Ch Muhammad Waheed, representing Hunza Sugar Mills Ltd, said that carryover stocks exceeding 1.2 million tonnes were creating financial pressure on the industry ahead of the upcoming crushing season.
The proposal comes as India considers importing around one million metric tonnes of sugar to contain rising domestic prices. According to Waheed, Pakistan’s proximity to India gives it a freight-cost advantage and could make it a competitive supplier.
As of August 15, Pakistan’s total sugar stocks stood at 2.81 million tonnes, while average monthly domestic consumption is around 0.55 million tonnes. Waheed said existing stocks were sufficient to meet domestic requirements until at least the end of December 2026, allowing room for exports while maintaining a strategic buffer.
Meanwhile, the Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved international tenders for the export of 108,000 metric tonnes of surplus sugar.
Federal Minister for Finance and Revenue Muhammad Aurangzeb chaired the ECC meeting, which considered a summary submitted by the Ministry of National Food Security and Research seeking permission for the export.
The sugar covered by the decision is held by the Trading Corporation of Pakistan (TCP) and represents the remaining quantity from the 300,000 metric tonnes imported last year on the recommendation of the Steering Committee on Sugar, constituted with Cabinet approval.
The international tendering process will be conducted in accordance with PPRA Rules 2004.
