Mills seek govt nod for surplus sugar export
Industries Ministry pleaded the ECC that the Finance Division should arrange foreign exchange of $110 million for the import of 200,000 metric tons of sugar. PHOTO: FILE
Sugar millers have appealed to the government to intervene in the market and direct the authorities concerned to take steps immediately for the export of surplus sugar.
“This is an opportunity to earn foreign exchange at a time when the economy is in a crucial phase,” remarked Pakistan Sugar Mills Association (PSMA) Chairman Chaudhry Muhammad Zaka Ashraf at a press conference on Tuesday.
“We have been trying to draw the attention of the government since the last crushing season that large stocks of surplus sugar will be available at the end of the season in April 2022,” he said, adding that it had also been confirmed by the Federal Board of Revenue (FBR) and other government institutions that the country had a record sugar production of 8 million tons.
Generally, the domestic consumption has been 6 million tons whereas sugar mills have a surplus of 2 million tons. “As per midyear stocktaking, as of July 31, 2022 a total of 3.03 million tons of the commodity was available with the sugar mills,” Ashraf revealed.
This is in addition to the stocks moving in the supply chain up to retailers and dealers. Keeping in view the estimated sugar consumption before the new crushing season begins in November, it is expected that 1.8 million tons will be consumed. This means Pakistan will definitely have a surplus of 1.2 million tons or more before the start of next crushing season.
“These statistics have already been verified through the FBR’s track and trace system,” he pointed out.
According to information gathered by the sugar industry on sugarcane plantations, it is estimated that in the 2022-23 season, there will be 10% increase in production as compared to the previous season.
Moreover, due to recent heavy rains, the sugarcane yield is expected to increase compared to last year.
“Projections indicate that approximately 9 million tons of sugar will be produced next year. This necessitates that the government allow export of 1.2 million tons in phases as it will help the industry liquidate its stock and handle next year’s surplus output of 3.2 million tons,” he argued.
Published in The Express Tribune, August 24th, 2022.
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