A fresh dispute has emerged between sugar mills and farmers over sugarcane pricing, just as the new crushing season approaches. While mills are offering PKR 400 per maund, farmers across key growing regions are demanding a fixed rate between PKR 500–550 per maund, citing rising sugar prices and increasing production costs.
Farmers Over Pricing Gap
Farmers argue that the current pricing being offered by mills does not reflect market realities. They highlight that:
- Last year, sugar prices were around PKR 135 per kilogram
- This year, sugar is being sold at PKR 200–210 per kilogram in retail markets
Despite this sharp increase, farmers claim they are still being asked to sell sugarcane at nearly the same rates as before, which they consider unjust. The widening gap between input costs, output prices, and farmer compensation has fueled protests and demands for government intervention.
Production Outlook: Mixed Signals Across Provinces
This year’s sugarcane production presents a mixed picture:
- Punjab has seen an increase in cultivation area, which could boost overall output
- Sindh, on the other hand, has experienced a decline in cultivated area, although crop yields remain strong
Favorable weather conditions in Sindh, including timely rainfall and moderate temperatures, have supported healthy crop development and may partially offset the reduction in acreage.
Expected Output vs Domestic Demand
Initial projections suggested that total sugarcane production could reach 84 million tons, translating into approximately 6.8 million tons of sugar. However, several factors affect this estimate:
- Average recovery rate is around 9% in Punjab and 8.7% in Sindh
- Additional losses occur during harvesting, transportation, and milling
With domestic sugar consumption expected to reach around 7 million tons, a supply shortfall already appears likely, even under optimistic production scenarios.
Flood Risks Add to Uncertainty
Another major concern is the impact of flooding in Punjab. Early estimates suggest that over 10 million tons of sugarcane may have been affected. If these losses are confirmed, it could significantly reduce overall production and further tighten supply in the domestic market.
This situation may ultimately lead to increased reliance on imports and continued upward pressure on sugar prices.
Harvesting Season Begins
The harvesting season is now approaching:
- In Sindh, the crop is already ready for harvesting
- In Punjab, harvesting is expected to begin within the next 10–15 days
As crop arrivals pick up, a clearer picture of actual production levels will emerge, helping policymakers and market participants better assess supply conditions.
Conclusion
The ongoing dispute over sugarcane pricing highlights deeper structural challenges within Pakistan’s sugar sector, where farmers, mills, and consumers remain misaligned. While farmers demand fair compensation in line with rising sugar prices, mills are hesitant to increase procurement rates amid uncertain production and market dynamics.
At the same time, concerns over flooding, regional production variations, and a likely supply shortfall suggest that market pressures are far from easing. As the harvesting season begins, the coming weeks will be critical in determining actual output and price trends.
Without timely policy intervention, transparent pricing mechanisms, and better coordination among stakeholders, the sugar sector may continue to face instability, higher prices, and increased dependence on imports, ultimately affecting both producers and consumers alike.
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.
