Original source (on modern site)
LAHORE: Amid warnings of a potential Rs100 billion collapse in farmers' revenues reminiscent of the 2017-18 sugar crisis, the Pakistan Kissan Ittehad (PKI) has demanded the immediate export authorisation of 1 million tonnes of surplus sugar before the upcoming crushing season kicks off on Nov 15. Addressing a press conference, PKI President Khalid Mahmood Khokhar highlighted that a record bumper sugarcane crop covering over 3.5 million acres is ready for harvest, with production projected to rise by 10 to 15 per cent year-on-year. With an existing surplus stock of 1.3 million tonnes currently sitting in domestic reserves, he warned that without urgent export permission, excess supply will crash market prices and force growers to sell below cost. According to the Pakistan Economic Survey 2025-26, sugarcane accounts for 0.8pc of Pakistan's GDP and 3.2pc of agricultural value addition. While total production hit a record 89.45m tonnes in FY26, with average yields rising to 780 maunds per acre, PKI emphasised that productivity growth still lags behind its true potential, leaving farmers vulnerable to recurring policy delays. To address the sector's chronic structural issues, the PKI presented the government with four primary policy demands: A fully market-driven sugar sector where imports, exports, production, and pricing operate free from administrative controls and government approvals. A ban on permitting any new sugar mills until the existing industry reaches at least 75pc capacity utilisation to ensure efficient resource allocation. Once new construction is allowed, enforce a minimum distance of 50 miles between sugar mills to prevent excessive market concentration and foster healthy commercial competition. Repeal all provincial sugar regulations to eliminate systemic market distortions. This move, Khokhar noted, would shift the industry's focus toward improving per-acre productivity within local catchment areas, ensuring long-term profitability and sustainable growth across the entire supply chain. Published in Dawn, September 5th, 2026 Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.