Rosy picture: Sugar millers present artificially sweetened stock estimate
Win ECC’s approval for export of another 250,000 tons of sweetener.
The Sugar Advisory Board had recommended that out of the estimated surplus of 800,000 tons, the mills could be allowed export of 500,000 tons. PHOTO: FILE
ISLAMABAD:
Owners of sugar mills have come up with inflated figures for the stock they are holding in an attempt to win the government’s nod for export of the sweetener and earn a handsome amount.
The Economic Coordination Committee (ECC) of the cabinet took notice of the exaggerated figures presented by the millers in its meeting held on March 27, sources say.
Despite that and on the insistence of the millers, the ECC set aside its earlier decision and allowed export of a further 250,000 tons of sugar.
In its February meeting, the ECC, while considering the millers’ request for permitting export of one million tons, decided that the matter would be taken up at the end of the sugar season in September-October this year.
According to sources, meeting participants told the ECC in its March sitting that the Sugar Advisory Board had met in mid-March to review sugar stocks, production estimate, price situation and available surplus for exports.
All stakeholders including representatives of provinces and the Pakistan Sugar Mills Association (PSMA) agreed on the production estimate for the 2013-14 season and assessed the leftover stock from the earlier season at 800,000 tons.
However, the Ministry of Industries and Production disagreed with the PSMA’s estimate and believed that actual leftover stock was 517,000 tons.
The ECC was told that after taking into account the domestic consumption of sugar ranging between 4.6 and 4.8 million tons and export of 500,000 tons, which had been already allowed, the surplus would be 800,000 tons according to the PSMA’s projection. The Ministry of Industries put the surplus at 717,000 tons.
A PSMA representative suggested that surplus sugar could be taken care of by allowing further exports in order to ensure financial viability of the mills and timely payments to sugarcane growers. A representative of the Ministry of Food Security and Research and the Punjab cane commissioner backed the proposal.
The Sugar Advisory Board had recommended that out of the estimated surplus of 800,000 tons, the mills could be allowed export of 500,000 tons.
The board also suggested that the Trading Corporation of Pakistan (TCP) – the state-run trading agency – may be asked to purchase 100,000 tons from the mills to cater to the needs of Utility Stores Corporation (USC), Canteen Stores Department and the Pakistan Navy during the month of Ramazan.
The meeting observed that USC should explore the possibility of lifting sugar directly from the market.
Keeping in view the situation, a proposal was floated that the mills could be allowed export of 500,000 tons from the surplus stock before June 15 and the TCP could be asked to procure 100,000 tons from the domestic market. After deliberations, the ECC gave the go-ahead for export of 250,000 tons.
In a meeting held on September 7 last year, the ECC had agreed on the export of 500,000 tons of sugar. According to the State Bank of Pakistan’s data, a quantity of 332,000 tons had been exported and the remaining 168,000 tons were expected to be shipped during March.
Published in The Express Tribune, April 15th, 2014.
Owners of sugar mills have come up with inflated figures for the stock they are holding in an attempt to win the government’s nod for export of the sweetener and earn a handsome amount.
The Economic Coordination Committee (ECC) of the cabinet took notice of the exaggerated figures presented by the millers in its meeting held on March 27, sources say.
Despite that and on the insistence of the millers, the ECC set aside its earlier decision and allowed export of a further 250,000 tons of sugar.
In its February meeting, the ECC, while considering the millers’ request for permitting export of one million tons, decided that the matter would be taken up at the end of the sugar season in September-October this year.
According to sources, meeting participants told the ECC in its March sitting that the Sugar Advisory Board had met in mid-March to review sugar stocks, production estimate, price situation and available surplus for exports.
All stakeholders including representatives of provinces and the Pakistan Sugar Mills Association (PSMA) agreed on the production estimate for the 2013-14 season and assessed the leftover stock from the earlier season at 800,000 tons.
However, the Ministry of Industries and Production disagreed with the PSMA’s estimate and believed that actual leftover stock was 517,000 tons.
The ECC was told that after taking into account the domestic consumption of sugar ranging between 4.6 and 4.8 million tons and export of 500,000 tons, which had been already allowed, the surplus would be 800,000 tons according to the PSMA’s projection. The Ministry of Industries put the surplus at 717,000 tons.
A PSMA representative suggested that surplus sugar could be taken care of by allowing further exports in order to ensure financial viability of the mills and timely payments to sugarcane growers. A representative of the Ministry of Food Security and Research and the Punjab cane commissioner backed the proposal.
The Sugar Advisory Board had recommended that out of the estimated surplus of 800,000 tons, the mills could be allowed export of 500,000 tons.
The board also suggested that the Trading Corporation of Pakistan (TCP) – the state-run trading agency – may be asked to purchase 100,000 tons from the mills to cater to the needs of Utility Stores Corporation (USC), Canteen Stores Department and the Pakistan Navy during the month of Ramazan.
The meeting observed that USC should explore the possibility of lifting sugar directly from the market.
Keeping in view the situation, a proposal was floated that the mills could be allowed export of 500,000 tons from the surplus stock before June 15 and the TCP could be asked to procure 100,000 tons from the domestic market. After deliberations, the ECC gave the go-ahead for export of 250,000 tons.
In a meeting held on September 7 last year, the ECC had agreed on the export of 500,000 tons of sugar. According to the State Bank of Pakistan’s data, a quantity of 332,000 tons had been exported and the remaining 168,000 tons were expected to be shipped during March.
Published in The Express Tribune, April 15th, 2014.