Punjab’s sugar sector has recorded a significant increase in both sugarcane crushing and sugar production during the 2026 crushing season, reflecting stronger operational performance and improved recovery rates compared to last year.
Overall Provincial Performance
As of 1st February 2026, sugar mills in Punjab reported:
- 🌾 Sugarcane crushed: 32,239,707 metric tons
- 🏭 Sugar produced: 2,865,166 metric tons
- ⚡ Average recovery rate: 9.68% (up from 9.18% last year)
This represents a year-on-year increase of 318,214 metric tons in sugar production, supported by higher crushing volumes and improved cane quality.
For comparison, during the same period last year:
- 🌾 28,146,730 metric tons of sugarcane were crushed
- 🏭 2,546,952 metric tons of sugar were produced
The growth highlights improved efficiency across Punjab’s sugar mills and better agricultural output.
Stock Position and Market Activity
Including the carry-forward stock of 112,116 metric tons, Punjab’s total sugar availability reached:
- 📦 Total sugar stock: 2,977,282 metric tons
Out of this:
- 🛒 Sugar sold: 1,184,602 metric tons
- 📦 Remaining stock: 1,792,679 metric tons
- 📊 Sales ratio: 39.79% (up from 37.12% last year)
Despite higher production, a large portion of stocks remains unsold, indicating steady but controlled market absorption.
Division-Wise Production Performance
🔹 Bahawalpur Division
- 🌾 Leading producer in the province
- 🏭 995,968 metric tons of sugar produced
🔹 Faisalabad Division
- 🏭 780,122 metric tons of sugar produced
- Strong second-largest contributor
🔹 Dera Ghazi Khan (DG Khan) Division
- 🏭 499,873 metric tons of sugar produced
- Showing consistent year-on-year growth
Bahawalpur continues to dominate provincial output, supported by strong cane availability and efficient mill operations.
Market Outlook and Price Expectations
Despite strong production growth and improved recovery rates, the sugar market faces mixed short-term signals:
- Higher production is increasing overall supply
- Reduced stock levels compared to previous cycles may tighten availability later
- International market uncertainty and inflationary pressures remain key risks
Analysts also suggest that prices could come under pressure ahead of Ramadan, depending on mill sales strategies and government intervention policies.
The balance between supply release and demand growth will play a key role in determining price direction.
Conclusion
Punjab’s sugar industry is currently experiencing a phase of strong production growth supported by higher crushing volumes and improved recovery rates, resulting in increased sugar availability across the province.
However, despite this positive production trend, the market outlook remains mixed due to stock distribution patterns, inflationary pressures, and seasonal demand expectations, particularly ahead of Ramadan.
In the short term, the market is expected to remain stable to slightly bullish, while medium-term price direction will depend on mill stock release strategies, regulatory oversight, and demand fluctuations.
Overall, Punjab’s sugar sector continues to demonstrate strong operational performance, but maintaining price stability will require careful coordination between industry stakeholders and policymakers.
The Agri-Crop editorial team comprises commodity market analysts, rice trade specialists, and agriculture industry professionals based in Pakistan. We track daily price movements, export data, and policy developments across Pakistan’s key agricultural sectors.
