The federal government has decided not to allow sugar export despite its historic production, fearing country could face wheat-like crisis on sugar front as well, well-informed sources in the Industries Ministry told Business Recorder.
Pakistan Sugar Mills Association (PSMA) had used several official channels to seek permission to export 500,000 tons of sugar but their efforts remained unsuccessful. The sources said that sugar situation has also been discussed by the secretaries'' committee headed by Finance Minister Syed Naveed Qamar on Thursday.
At present total sugar stock stands at 5.7 million tons ie 4.7 million tons production of this year plus one million ton carryover stock. However, the policymakers fear that next year would be the crisis year in sugar. But disappointed with millers'' attitude, farmers have reduced sugarcane cultivation area by 10 percent, the sources added.
The sources said that total consumption till September 30 was calculated at 4.2 million tons of which the remaining stock would be 1.5 million tons; 0.7 million tons would be buffer stock whereas 0.8 millions would be sold through open tenders.
The government expects that millers would delay production for two months ie until December as they do every year, which means there would be no surplus sugar for export, the sources continued. The sources, however, expect that next season growers and millers would be seen requesting to bring their sugarcane to mills. The committee also noted that present sugar prices of Rs 29.50 per kg were reasonable and millers were making profit.
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