PTBP Web Desk
Pakistan’s Punjab sugar industry has made a robust start to the 2025–26 crushing season, recording a sharp increase in both sugarcane processing and sugar output during the first 45 days. Official data indicates that sugar mills across the province have produced 1.36 million metric tons of sugar, reflecting improved recovery rates, better cane quality, and tighter regulatory oversight.
According to figures released by the Punjab Cane Commissioner’s Office, all 41 operational sugar mills in Punjab crushed a total of 15.06 million metric tons of sugarcane by December 31, 2025. This early momentum suggests that the province’s sugar sector is operating more efficiently compared to the previous season, both in terms of processing standards and compliance with government regulations.
One of the most notable improvements has been in the average sugar recovery rate, which climbed to 9.43%, up from 9.01% during the same period last year. Recovery rate is a key indicator of efficiency in sugar production, as it measures how much sugar is extracted from crushed cane. Industry analysts note that even marginal improvements in recovery can significantly increase total output when applied across millions of tons of sugarcane.
Year-on-year comparisons further highlight the sector’s progress. Compared to the corresponding period of the previous crushing season, mills processed 1.14 million metric tons more sugarcane and produced an additional 156,590 metric tons of sugar. This growth reflects not only higher cane availability but also improved coordination between growers, mills, and regulators.
Total sugar availability in Punjab, including carryover stocks from the previous season, has now reached 1.47 million metric tons. Of this volume, more than 42% has already been sold, indicating healthy market activity and steady demand. Market participants say the early release of sugar into the supply chain could help stabilize prices in the coming months.
Punjab Cane Commissioner Amjad Hafeez attributed the improved performance to stricter monitoring and enforcement of industry laws. Speaking on the season’s progress, he said the situation had improved significantly due to effective oversight and compliance measures. According to officials, mills have been closely monitored to ensure timely crushing, accurate reporting, and adherence to payment obligations owed to farmers.
Farmer payments, a long-standing issue in Pakistan’s sugar sector, have also shown improvement this season. Growers have so far supplied sugarcane worth approximately Rs98.8 billion, of which Rs87 billion has already been paid, translating into an 88% payment compliance rate. This marks a relatively strong performance compared to previous seasons, when delayed payments often triggered protests and legal disputes.
The average price paid to farmers has also increased. Growers received about Rs401 per 40 kilograms of sugarcane, up from Rs387 during the same period last year. Agricultural economists say this price increase, combined with improved payment discipline, could encourage farmers to maintain or expand cane cultivation, provided input costs such as fertilizer and fuel remain manageable.
From a market perspective, the surge in sugar production is beginning to influence prices. Observers note that ex-mill sugar prices in Punjab have eased to around Rs139 per kilogram and may decline further if current production and supply trends continue. Lower ex-mill prices are often a precursor to softer retail prices, although the extent of the pass-through depends on distribution costs and market behavior.
Commenting on the outlook, Lahore Sugar Dealers Association President Muhammad Amjad said that retail sugar prices could fall below Rs150 per kilogram if supply remains steady and no major disruptions occur. Such a decline would offer some relief to consumers, who have faced persistent food inflation in recent years.
Industry experts caution, however, that sustaining these gains will require continued policy consistency. While improved recovery rates and better compliance are positive signs, the sugar sector remains sensitive to factors such as weather conditions, government pricing policies, and export or import decisions. Sudden policy shifts, they warn, could undermine market stability and farmer confidence.
The performance of Punjab’s sugar industry also carries broader economic implications. Sugarcane is one of the province’s most important cash crops, supporting millions of livelihoods across farming, transport, and processing. Strong early-season output can improve rural incomes, support allied industries, and contribute to overall agricultural growth.
