ISLAMABAD: The Commerce Ministry has reportedly decided to oppose export of sugar as any such decision will inflate prices in the domestic market, well informed sources in the Ministry told Business Recorder.
On May 25, 2022, India imposed a ban on export of sugar from June 1, 2022 despite bumper crop.
This is first time in the history of Pakistan when sugar production is documented due to implementation of Track and Trace System introduced by the Federal Board of Revenue and total production is estimated at 8.1 million metric tons.
Now, sugar sales are also being documented under the same system. Each bag from the sugar mill to the market is traceable and documented. Thus, out-of-book production and sale of sugar is now almost out of question.
Sugar consumption pattern will emerge after the whole year of intake by the market which will be complete by the end of October when a new crushing season will commence.
PM Shehbaz orders ban on sugar export
The Ministry of National Food Security and Research (MNFS&R) estimated national sugar consumption at 6.8 million metric tons on the basis of the past available documented sugar production but did not include sugar produced in the past.
The sources said, the government would hold the sugar export decision till the next crushing season as due to Track and Trace System actual consumption pattern and demand will come after this season, adding that surplus sugar could be exported before the start of new crushing season or during the crushing season as actual demand, supply and next production estimates will be available.
Copyright Business Recorder, 2022
Comments
Comments are closed.