LAHORE: The latest consolidated data for Punjab’s sugar industry reveals an accelerated operational period, marked by rapid crushing and steady sales flow.
Figures for the reporting period ending December 9 show that the sector has processed over six million tonnes of sugarcane, resulting in substantial sugar output. With a cumulative recovery rate holding at nearly 9.0 per cent and sales outpacing inventory retention, the market demonstrates healthy liquidity, although a significant stock balance remains to be cleared.
Total cane crushed stands at 6.178 million metric tonnes. Sugar produced from this crushing volume amounts to 0.504 million metric tons. Sucrose recovery currently sits at 8.92 per cent, meaning that for every 100 kilogrammes of cane crushed, mills extract roughly 8.92 kilogrammes of sugar. Maintaining this recovery rate is crucial for profitability, as even a minor drop can result in thousands of tons of lost product given the scale of operations.
The total sugar supply available to the market includes both fresh production and carry-forward stock. The carry-forward stock from previous cycles stood at 112,116 metric tonnes. Combining this with fresh production of 504,643 metric tonnes brings total sugar availability to 616,759 metric tonnes, representing the total sellable volume in the supply chain during this reporting period.
Sales have reached 326,987 metric tonnes, representing 53.02 per cent of total availability. Despite strong sales, the industry retains a substantial stockpile, with the remaining balance at 289,772 metric tonnes, or nearly 47 per cent of total sugar. This indicates that mills continue to hold significant capital in the form of inventory.
Managing this balance will be a primary objective in the coming weeks. If sales momentum continues, the remaining 289,772 tonnes should steadily flow into the market. However, stakeholders must monitor recovery rates closely, as any improvement in subsequent crushing could increase fresh supply and add pressure to clear stock before it becomes a liability.
Meanwhile, according to Amjad Hafeez, cane commissioner of Punjab, ex-mill sugar prices have fallen by Rs15 to Rs17 per kilogramme since the start of the crushing season, with further declines expected. Mills are currently paying farmers between Rs375 and Rs480 per 40 kilograms of sugarcane.
