Sugar exports unviable without subsidy, say millers
Caution govt they will remain in liquidity crisis in the absence of exports
PHOTO: AFP
ISLAMABAD:
Keeping in view the high cost of production and depressed world market, the Pakistan Sugar Mills Association (PSMA) has said that they will export surplus stock of the commodity if the government provides subsidy, believing that the support will help address liquidity shortage with the millers.
“If subsidy, as requested by the Pakistan Sugar Mills Association, is provided, the surplus stock will be shipped,” the millers observed in a meeting held on Tuesday.
They noted that there were adequate sugar stocks available in the country, which could cater to local consumer needs till February 2018.
ECC allows sugar export, but defers decisions on CPEC and circular debt
“There was consensus in the meeting that till these stocks were disposed of in the market, the mills would remain in a liquidity crisis and the start of next crushing season would not be possible,” an association spokesperson said in a statement.
The spokesperson pointed out that it was not viable to export sugar as the production cost stood high at the government-notified sugarcane price of Rs180 per 40 kg. The weakening world market was also an obstacle in the way of shipments, he said.
“If the current situation prevails, the mills will not be able to procure sugarcane at anything more than Rs120 per 40 kg. However, if the requested subsidy is provided, the surplus stock will be exported,” he emphasised.
Published in The Express Tribune, August 2nd, 2017.
Keeping in view the high cost of production and depressed world market, the Pakistan Sugar Mills Association (PSMA) has said that they will export surplus stock of the commodity if the government provides subsidy, believing that the support will help address liquidity shortage with the millers.
“If subsidy, as requested by the Pakistan Sugar Mills Association, is provided, the surplus stock will be shipped,” the millers observed in a meeting held on Tuesday.
They noted that there were adequate sugar stocks available in the country, which could cater to local consumer needs till February 2018.
ECC allows sugar export, but defers decisions on CPEC and circular debt
“There was consensus in the meeting that till these stocks were disposed of in the market, the mills would remain in a liquidity crisis and the start of next crushing season would not be possible,” an association spokesperson said in a statement.
The spokesperson pointed out that it was not viable to export sugar as the production cost stood high at the government-notified sugarcane price of Rs180 per 40 kg. The weakening world market was also an obstacle in the way of shipments, he said.
“If the current situation prevails, the mills will not be able to procure sugarcane at anything more than Rs120 per 40 kg. However, if the requested subsidy is provided, the surplus stock will be exported,” he emphasised.
Published in The Express Tribune, August 2nd, 2017.