Pakistan Sugar Mills Association Punjab Zone (PSMA) spokesman said here on Thursday that sugar prices have not increased due to exports. He mentioned that some unfounded misconceptions have been raised in media by linking sugar price hikes with sugar exports without establishing factual factors. He explained that due to a conservative approach, sugar industry was not timely allowed export permission which caused serious liquidity issues for the industry. At the end of September 2024, industry had two years of surplus sugar production in pipeline (approximately 1.5 million metric tons valuing Rs. 250 billion) which was pledged with banks at nearly 25 per cent interest rate. Notwithstanding the fact that storage life of sugar is only two years, after that it becomes unfit for human consumption. It is an international practice that whenever local production of a food commodity becomes surplus, it is exported. It was mutually agreed with the government since the time of first export permission that sugar prices will not exceed Rs. 140 ex-mill per kg during export period but due to huge surplus stocks, the ex-mill prices remained much below this benchmark continuously for many months. Almost 50 per cent of total available sugar was sold much below its cost of production causing massive losses to the industry.