ISLAMABAD: Federal Minister for Industries and Production, Rana Tanveer Hussain on Saturday made it crystal clear to Pakistan Sugar Mills Association (PSMA) that any negligence in starting timely sugarcane crushing by any sugar mill will result in cancellation of its export licence.
During a meeting of the Sugar Advisory Board (SAB), the minister underscored the importance of protecting farmers from exploitation, asserting that such practices would not be accepted.
He maintained that sugar mill owners are bound to compensate farmers with a fair price for their sugarcane. Besides, he instructed the provincial cane commissioners to provide a report on the ongoing sugarcane crushing activities.
The SAB expressed satisfaction over the current sugar reserves in the country, with minister highlighting the timely commencement of the sugar crushing season as a significant achievement.
“The timely commencement of the sugar crushing season is a significant achievement ad it will ensure smooth supply of the sugar which will bring stability in the market,” he added.
Increase in sugar price: Minister seeks report from cane commissioner
He also took notice of farmers’ complaints regarding the low prices of sugarcane by sugar mills and directed the sugar commissioner to present a report on sugarcane prices in next meeting.
The board also reviewed the current situation of sugar stocks in the country and expressed complete satisfaction with the current sugar reserves in the country.
The board meeting was also attended by other stakeholders including PSMA to discuss and review the sugar stock availability, commencing of new sugarcane crushing season, current market prices, sugarcane rates, present global market sugar prices, and industry production cost.
The minister directed the PSMA to ensure the allowed quantity of sugar export within the due time which was set for three months as decided on October 8, 2024 and local commodity prices must remain stable so that the consumers cannot suffer as witnessed in the past. According to an official presentation, the industry so far has exported only 330,000 tons out of 790,000 allocated quota for export as 460,000 tons of permitted quota for exports is yet not utilised.
During the meeting, the PSMA representatives said that Pakistan has over 1.7 million tons of additional sugar this year which should have been exported.
While the government in June 2024 allowed PSMA to export 150,000 tons sugar which in August was further extended by 100,000 tons and 40,000 tons sugar export was allowed on government-to-government basis to Tajikistan and on October 8, 2024, the government allowed the sugar industry to export 500,000 tons.
According to cane commissioner sugar offtake/consumption report in past 12 months, a total 6.33 million tons of sugar was consumed locally. The data shows that monthly on average, 545,000 tons of sugar was used including local consumption and exported quantity.
During 2023-24 crushing season, Pakistan has produced a total of 6.843 million tons of sugar, of which, 4.37 million tons was produced in Punjab, 2.022 million tons in Sindh and 447,000 tons in Khyber Pakhtunkhwa (KPK).
While the country had a total of 823,000 tons of carryover sugar stocks during the season, of which, 517,000 tons with Punjab’s mills, 191,000 tons with Sindh’s mills and 115,000 stocks by Khyber Pakhtunkhwa thus having a total quantity of 7.664 million tons.
According to PSMA officials, last year sugarcane price was fixed at Rs350 per 40kg which in 2023-24 reached Rs450 per 40-kg and the production cost of sugar at present stands at Rs170 per kg while in the retail market, refined sugar was available in the range of Rs140 per kg which is the lowest price in the world.
The meeting was informed that within past one month, sugar price in the wholesale market has reached even to Rs6,100 per 50-kg bag which is lowest in two years’ period.
The meeting was further informed that in Pakistan industrial use of sugar stands at 85percent and the rest 15 percent was domestic use. Moreover, 18 percent general sales tax (GST) was imposed on sugar.
Copyright Business Recorder, 2024
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