Mills seek to export surplus sugar

The Pakistan Sugar Mills Association (PSMA) has demanded that the government allow the export of excess sugar which has a potential to inject over $1 billion into the national exchequer.

The pitch to reap the benefits of the surplus sugar was made in a meeting of PSMA that discussed statistics released by the ministry of food security according to which the country produced 7,905,564 tons of sugar in the year 2021-22.

The meeting was told that the surplus sugar produced during the current season, if exported, could generate $1 billion in foreign exchange, while additional sugar from the next season is expected to generate another $1 billion.

According to the statistics, last year's stocks were 51,706 tons of sugar, while the amount of sugar obtained from beet was 70,000 tons.

The total quantity of sugar at the beginning of the season and year was 8,027,270 tons.

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Meanwhile, a total of 5,316,473 tons of the sweetener has gone from stock or been consumed till September 30.

According to figures released by the ministry, the country will have 1,736,017 tons of surplus sugar by the time the new crushing season begins in November.

It was also informed in the meeting that after a long gap of 7 months, the meeting of the Sugar Advisory Board has been called on October 6 (today).

The rate of the commodity in the international market was $560 per ton which has now fallen down to $528.70 per ton due to the government's inattention and delay.

“This rate will further fall to $427 per ton in February and March, which will cost the country about $68 million,” the meeting was further told.

The general body of the Pakistan Sugar Mills Association urged the government to immediately allow the surplus sugar to be exported before it was destroyed.