By Sabica Tahira ⏐ 5 hours ago ⏐ Newspaper Icon 2 min read
Punjab Sugar Market In Turmoil As Mills Refuse Govt Price

Punjab’s sugar industry has recorded a strong start to the 2025–26 crushing season, with mills producing 1.36 million metric tons of sugar in just 45 days. The surge reflects improved recovery rates, better cane quality, and stricter enforcement of industry regulations, according to official data.

Data from the Punjab Cane Commissioner’s office shows that all 41 operational sugar mills crushed 15.06 million metric tons of sugarcane by December 31, 2025. The average sugar recovery rate rose to 9.43%, compared to 9.01% during the same period last year, highlighting gains in efficiency and processing standards.

Year-on-year figures indicate a notable improvement, as mills processed 1.14 million metric tons more sugarcane and produced an additional 156,590 metric tons of sugar compared to the previous season.

Total sugar availability in Punjab, including carryover stocks, currently stands at 1.47 million metric tons, of which over 42% has already been sold. Punjab Cane Commissioner Amjad Hafeez attributed the improved results to strict monitoring and compliance with laws, stating, “The situation has improved significantly this season due to effective monitoring and compliance.”

Farmers have supplied sugarcane worth Rs98.8 billion so far, with Rs87 billion already paid, reflecting an 88% payment compliance rate. Growers received an average price of Rs401 per 40kg, higher than last year’s Rs387.

Market observers note that ex-mill sugar prices in Punjab have eased to around Rs139 per kg and may decline further. Lahore Sugar Dealers Association President Muhammad Amjad said retail prices could drop below Rs150 per kg if current conditions remain stable.