Pakistan Faces Another Sugarcane Crisis – Agriculture Under Pressure

Pakistan Faces Another Sugarcane Crisis is once again under stress as the sugarcane crisis returns, affecting millions of farmers, sugar mills, and the national economy. Despite being one of the world’s major sugarcane producers, Pakistan struggles to maintain stability in the sector due to delayed crushing, low procurement rates, government-mill conflicts, excessive production costs, hoarding, and poor regulatory enforcement.

The sugarcane sector contributes significantly to rural employment and provincial revenue, especially in Punjab and Sindh, yet it continues to face cyclical crises that push farmers into financial distress. The 2025 season has exposed deeper structural issues that threaten long-term agricultural sustainability.

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2. Sugarcane Production in Pakistan – An Overview

Key Highlights

• Pakistan ranks among the top 10 sugarcane-producing countries.
• Punjab contributes 60%, Sindh 30%, and KP 10% to cane output.
• More than 1.5 million farmers rely on sugarcane for their livelihood.
• The sugar industry runs 90+ sugar mills, generating thousands of jobs.

Sugarcane remains a vital cash crop, but the sector’s mismanagement turns potential into crisis repeatedly.

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3. Root Causes of the 2025 Sugarcane Crisis in Pakistan

3.1 Delayed Crushing by Sugar Mills

One of the biggest triggers is the late start of crushing by mills, leaving farmers stuck with mature crops in the fields. Delayed crushing leads to:

• Lower sucrose recovery
• Crop drying and weight loss
• Farmer income losses
• Supply chain disruptions

Punjab has already issued warnings and notices to mills delaying operations.

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3.2 Dispute Over Sugarcane Support Price

Another major reason is price conflict between farmers and mills.

Sugarcane Support Price (2025 Season)

• Punjab: Rs. 425 per 40kg
• Sindh: Rs. 450 per 40kg

Mill owners argue that these rates are high compared to international sugar prices. Farmers claim that input costs (diesel, fertilizers, labour) have increased, making the government’s notified rate the bare minimum for survival.

This clash creates delays, protests, and market instability every year.

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3.3 High Cost of Production

Farmers continue to struggle due to rising input costs:

• Fertilizers have surged by 20–25%
• Diesel is at record-high levels
• Labour wages have increased
• Pesticides and machinery rentals are expensive

Without subsidies or financial support, small farmers suffer the most.

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3.4 Hoarding, Smuggling & Artificial Shortages

Sugar smuggling to Afghanistan and Central Asian markets has contributed to domestic shortages. Hoarding creates artificial price hikes, resulting in:

• Expensive sugar for consumers
• High retail inflation
• Pressure on the government to import sugar

These market manipulations deepen the crisis.

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3.5 Weak Government Regulation

Poor enforcement of laws regarding:

• Crushing start dates
• Weighing transparency
• Timely payments to farmers
• Anti-hoarding rules

…has made the crisis worse, giving sugar cartels more power over the market.

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4. Impact of the Sugarcane Crisis on Farmers

4.1 Financial Losses for Growers

Farmers face:

• Loss of crop weight
• Lower sucrose recovery
• Delayed payments from mills (often months late)
• Increased loans and debt burden

Small farmers are forced to sell their cane below the official rate due to desperation.

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4.2 Impact on Wheat Sowing

Delayed sugarcane harvesting disrupts the wheat cultivation cycle. If farmers can’t clear fields in time:

• Wheat sowing is delayed
• Production decreases
• National food security is threatened

The sugarcane crisis therefore affects more than just sugar — it influences Pakistan’s staple food supply.

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4.3 Mental and Social Stress in Rural Communities

Constant financial instability pushes rural families into:

• High stress
• Lower living standards
• Reduced ability to invest in farms
• Migration towards cities

Read Also: Breaking News: Punjab Govt Halts Verification and Computerization of Manual Arms Licenses 2025

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5. Impact of the Crisis on Pakistan’s Economy

5.1 Rising Sugar Prices

The sugar crisis has led to price volatility:

• Retail prices touch Rs. 180–Rs. 220 per kg
• In some cities, sugar touches Rs. 240 per kg

This contributes to overall inflation.

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5.2 Pressure on National Food Security

If farmers shift away from sugarcane to other crops, mills face raw material shortages, affecting:

• Sugar stock levels
• Food supply chain
• Export potential

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5.3 Import Burden on the Government

When domestic production drops, Pakistan is forced to import sugar, costing millions in foreign exchange.

This affects the country’s fragile economic stability.

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6. Government Response to the Sugarcane Crisis

6.1 Notices & Warnings to Mills

Punjab and Sindh authorities have issued:

• Show-cause notices
• Penalties
• Daily monitoring directives

…to ensure crushing begins on time.

6.2 Crackdown on Smuggling

Border security forces have intensified checks to prevent sugar smuggling. Still, the illegal trade continues due to price differences between countries.

6.3 Price Monitoring

Provincial governments have deployed monitoring teams to ensure mills buy cane at the official support price.

6.4 Efforts to Increase Transparency

Government is introducing:

• Digital weighbridge monitoring
• Online farmer payment tracking
• Real-time crushing updates

These measures aim to curb corrupt practices.

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7. Long-Term Structural Problems Behind the Sugarcane Crisis

Pakistan’s sugar sector suffers from several built-in weaknesses:

7.1 Too Many Sugar Mills

Despite limited cane availability, new mills keep opening, leading to excess crushing capacity.

7.2 Water Mismanagement

Sugarcane is a water-intensive crop. Pakistan’s irrigation system is outdated, causing:

• Water loss
• Low efficiency
• High production costs

7.3 Lack of Modern Technology

Farmers still use old methods and outdated seed varieties, leading to low yield compared to countries like Brazil and India.

7.4 No Strong Farmer Unions

Mill owners remain powerful while farmers lack collective bargaining power.

Read Also: Breaking News: NADRA Launches Online Biometric Verification for Islamabad Vehicle Transfers

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8. Solutions to Prevent Future Sugarcane Crises

8.1 Digitized Supply Chain

A digital tracking system can monitor:

• Cane procurement
• Payments
• Crushing start/end
• Weighbridge records

This will minimize corruption.

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8.2 Strengthening Farmer Support

Government should ensure:

• Subsidized diesel and fertilizers
• Modern farming training
• Access to bank loans
• Prompt payments within 15 days

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8.3 Strict Enforcement of Crushing Schedule

Imposing heavy fines on mills delaying crushing will protect farmers and ensure continuous supply.

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8.4 Encouraging Alternative Crops

Farmers should be incentivized to grow:

• Oilseeds
• Pulses
• Fodder

…to ease pressure on the overburdened sugar sector.

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8.5 Export-Quality Production Strategies

Improved practices can open new export markets and generate foreign exchange.

Read Also: Breaking News: DigiSkills Launches 2nd Batch of Free Online Courses 2025 – Apply Before 2 December

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9. Conclusion

Pakistan’s recurring sugarcane crisis exposes deep-rooted problems in agricultural governance, market regulation, and production management. Farmers are the biggest victims as delayed crushing, price disputes, and expensive inputs push them into economic struggle.

To end the cycle of sugarcane crises, Pakistan must focus on better regulation, digital transparency, timely payments, reduced smuggling, and farmer-friendly policies. Only then can the agricultural sector stabilize and contribute effectively to the country’s economy.

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