Sugar Mills Resist Punjab’s Sugarcane Crushing Order, Citing Surplus Stock

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LAHORE, November 15, 2026: Sugar mills in Punjab have raised objections to the provincial government’s order to begin sugarcane crushing from November 15, claiming that 1.3 million tonnes of surplus sugar remain in their warehouses and that restarting operations at such short notice is impractical.

The Punjab government has directed all sugar mills to begin purchasing sugarcane and commence crushing operations following approval from the provincial governor.

However, the Pakistan Sugar Mills Association’s North Zone has challenged the timing of the notification, arguing that mills require at least 15 days to prepare their boilers and heavy machinery before production can resume.

According to the association, the government issued the notification at 9pm, requiring mills to begin operations the following day without sufficient preparation time.

The association also claimed that approximately 1.3 million tonnes of surplus sugar remain unsold in mills’ warehouses, while another 100,000 tonnes from the government’s earlier import of 300,000 tonnes have yet to be sold.

It maintained that the unsold stocks have already placed a substantial financial burden on the industry through financing costs, mark-up payments and taxes.

The millers argued that beginning another crushing season before clearing existing inventories would further increase financial pressure on the sector.

They urged the government to immediately permit the export of surplus sugar, investigate officials allegedly responsible for providing inaccurate figures and introduce complete deregulation of the sugar industry.

The association also cited the Sugarcane Act, 1950, arguing that mills have until November 30 to begin crushing operations and that the November 15 deadline is therefore unreasonable.

Meanwhile, official figures indicate that sugarcane cultivation in Punjab has expanded to approximately 2.452 million acres this year, an increase of 16 percent compared with the previous season.

Of the province’s 47 sugar mills, 41 are currently operational, according to the reported figures.

The Punjab Food Safety and Consumer Protection Department has maintained that farmers’ rights will be protected during the crushing season.

Sugarcane prices will be determined through market mechanisms, according to the provincial government’s arrangements.

The disagreement over the crushing schedule comes as authorities seek to ensure timely sugarcane procurement, while mill owners press for measures to address existing sugar inventories and financial liabilities.

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