The sugar manufacturers have sought two month extension in validity of the period of sugar exports due to expire on March 31, 2017. Sources toldBusiness Recorder that the Pakistan Sugar Mills Associations (PSMA) has written a letter to the Ministry of Commerce requesting to move a summary to the Economic Co-ordination Committee (ECC) of the cabinet to get an extension in the validity period of sugar exports till May 31, 2017.
They further said that the PSMA has requested extension in export period on account of prevailing Pak-Afghan border situation as well as delay in issuance of notification by State Bank of Pakistan (SBP) regarding sugar exports. The SBP issued notification on January 19, 2017 while the federal government allowed export of the commodity on December 28, they said.
The EEC of the cabinet approved export of 0.25 million tons of sugar until March 31, 2016. The government, however, has refused to provide any export rebate to the traders for overseas sales. The ECC decision says that only those mills will be allowed to export that have cleared outstanding dues of farmers relating to the last season and have started crushing at full capacity.
According to an official document of Ministry of Industries and Production, during the sugar season 2016-17 local mills produced 2.89 million tons of sugar and stocks from previous year stood at 0.27 million tons. Total stocks available with the sugar mills have been quantified at 3.17 million tons out of which 0.69 million tons have been sold and the balance stock with sugar mills as on February, 3, 2017 is estimated at 2.47 million tons. This is sufficient up to July 28, 2017 at consumption rate of 0.4 million tons per month, the document revealed.
There are 84 sugar mills in the country with an annual sugar production capacity of 6.8 million tons. The sugar crushing season starts from October to November. According to official documents, out of total 2.89 million tons sugar produced in 2016-17, Punjab produced 1.91 million tons, KPK 0.21 million tons and Sindh 0.78 million tons. Out of the total stock of 3.17 million tons of the commodity, Punjab has 1.93 million tons, Sindh 1.03 million and KPK 0.211million tons. The sugary industry exported 2.49 million tons of sugar from 2011-2012 to 2014-15. The EEC has allowed a further 0.5 million tons of sugar exports of which 0.254 million tons had been exported till March 17, 2016.
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