Stakeholders concerned at new sugar mills in cotton belt

Published April 4, 2026
A file photo of sugar mill in Pakistan. —Dawn/File
A file photo of sugar mill in Pakistan. —Dawn/File

LAHORE: Cotton stakeholders have appealed the political and judicial authorities to intervene and halt setting up of new sugar mills in the cotton belt.

A fresh wave of concern has gripped Pakistan’s cotton sector as plans to establish new sugar mills in southern Punjab threaten to further erode cotton production – despite the country already producing 1.5 million tonnes of surplus sugar annually.

The alarm has been raised by the Pakistan Cotton Ginners Association (PCGA), which has formally appealed to top state leadership to halt the proposed projects near Rahim Yar Khan and along the Punjab-Sindh border.

Letters have been sent to key figures including Supreme Court Chief Justice Yahya Afridi, Prime Minister Shehbaz Sharif, and Army Chief Asim Munir, among others.

Seek implementation of crop zoning laws

According to Ihsanul Haq, Chairman of the Cotton Ginners Forum, Rahim Yar Khan — once Pakistan’s largest cotton-producing district with up to 1.8 million bales — has rapidly transformed into a sugarcane-dominated zone. Currently, six sugar mills are operational in the district, while four more exist along the adjoining border region. Additional mills are now reportedly being set up in Zahir Pir and nearby border areas, intensifying fears among cotton stakeholders.

Industry experts warn that the unchecked expansion of sugar mills in traditional cotton zones has already caused severe damage. National cotton production has plummeted from around 15m bales to nearly 5.5m bales, leading to a sharp decline in exports and forcing Pakistan to spend billions of dollars annually on importing cotton and edible oil.

The PCGA emphasised that cotton remains the backbone of Pakistan’s economy, but weak enforcement of crop zoning laws has allowed sugarcane cultivation to expand disproportionately. Notably, sugarcane consumes nearly seven times more water than cotton, raising additional concerns over water scarcity in southern Punjab.

The association also pointed out that existing sugar mills are already producing surplus sugar, with mill owners currently seeking government approval to export excess stock — highlighting the lack of economic justification for new mills.

In its appeal, the PCGA has urged authorities, including Punjab Chief Minister Maryam Nawaz Sharif and Sindh Chief Minister Murad Ali Shah, to immediately stop the establishment of new sugar mills in southern Punjab. It further called for strict implementation of crop zoning laws and incentives for cotton farmers to revive production and boost exports.

Published in Dawn, April 4th, 2026

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