Extension in deadline: sugar export posts 328.67 percent growth in June

Following the extension in deadline for export of Sugar by the Economic Co-ordination Committee of the Cabinet (ECC), sugar export in June 2013 witnessed a growth of 328.67 percent to 67,970 metric tons or $31 million against the export of 15, 856 metric tons or $7 million in May 2014.
Talking to Business Recorder here on Friday, an official of Pakistan Sugar Mills Association (PSMA) said that the country had recorded record sugar production this year and the biggest challenge of the sugar mills had been disposal of their surplus stock. He said that exporters boost their exports after May and in June exports of sugar grew by 328.67 percent to 67,970 metric tons or $31 million against 15, 856 metric tons or $7 million in May 2014. No export was made in April, he added.
He said that the ECC had allocated quota of 0.25 million ton sugar for export till 15 June, but due to inconsistency in policies by the government and low prices of sugar in international market, export was stopped which results in losses to sugar mills. According to the recently issued notification by ECC to Sugar Mills, "the ECC of the Cabinet considered the summary dated June 10, 2014, submitted by the Ministry of Commerce (MoC) on the 'Export of Sugar' and decided to extend the deadline for the export of sugar from June 15th, 2014 to October 31st, 2014."
It further said that the ECC had extended the shipment period for the export of sugar from 45 days to 90 days with retrospective effect from March 27, 2014 and also reduced the advance deposit from 25 percent to 15 percent for the export of sugar with immediate effect. The shipment of sugar would be required to make within 90 days within the date of approval of the contract of the export of sugar by the State Bank of Pakistan. Export might be made against irrevocable letter of credit or a contract with 15 percent non-refundable advance payment.
He said that this year record production of sugar had been recorded which was largest in the history of Pakistan ie 5, 335,763 metric tons. The production posted 6.07 percent growth with a surplus stock of 8, 40,000 metric tons as the domestic need in Pakistan is 4,500,000 metric tons, he added. In 2013-2014 sugar year, although world production decreased by 2,119,000 million tons but despite this projected fall, the world total supply remained 180, 837, 000 tons, which is still second largest in the history.