Government Approves Export of 250,000 Tons Sugar Ahead of Crushing Season
A committee led by Deputy Prime Minister Ishaq Dar has cleared the export of 250,000 tonnes of sugar from the domestic market, a move that could tighten local supply and lift sugar prices before the new crushing season starts on November 15.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Sugar mill stocks likely to benefit from higher domestic prices – Buy bias on sugar manufacturers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- EconomyPositively affected
Companies
Companies Mentioned
- SUGAR· Positively affected · Buy bias
Mentions in This Briefing
Sectors: Economy — Positive · Buy bias. PSX tickers: SUGAR. Sugar mill stocks likely to benefit from higher domestic prices – Buy bias on sugar manufacturers.
Full Story
Open on ProPakistani## Approval of Sugar Export
The Pakistani government, through a committee chaired by Deputy Prime Minister Ishaq Dar, has given the green light to export 250,000 tonnes of sugar that is currently available in the local market. The proposal will now be submitted to the Economic Coordination Committee (ECC) and the federal cabinet for final endorsement.
## Source of Exported Sugar
The sugar slated for export will be sourced directly from the market and will not be taken from the reserves held by the Trading Corporation of Pakistan (TCP). This ensures that the export quota does not deplete the strategic stockpile.
## Timing and Market Implications
The decision comes just weeks before the new sugarcane crushing season, which is set to commence on 15 November. With a sizable amount of sugar leaving the market before the fresh crop arrives, analysts anticipate a potential supply gap that could push domestic sugar prices higher.
## Impact on Sugar Mills
Historical data shows that a rise of just Rs 1 per kilogram in sugar price can add between Rs 5 billion and Rs 6 billion to the market value of sugar mill inventories. Last year, when exports were permitted, sugar prices jumped from around Rs 140 per kg to roughly Rs 220 per kg, underscoring the price‑sensitivity of the sector.
## Outlook
Stakeholders will be watching the ECC’s final decision closely, as the export move could influence both consumer inflation and the profitability of listed sugar manufacturers.