Secretary Industries and Production Khizer Hayat Gondal has convened a meeting of Sugar Advisory Board (SAB) on Wednesday (tomorrow) to review overall stock of sugar and work out exportable surplus, well informed sources in Commerce Ministry told Business Recorder on Monday. The meeting has been convened after massive hue and cry by the sugar industry and growers with the two citing issues in payment to the growers.
Recently, Secretary Commerce Younas Dagha had proposed a meeting of SAB, a body which represents all stakeholders including provincial governments, to firm up sugar production figures prior to submission of a summary to the Economic Co-ordination Committee (ECC) for approval for further export.
Sugar industry and growers are accusing Commerce Ministry of delay in approval of sugar export due to which the industry is unable to clear the payments of growers. According to sources, Commerce Ministry has received a letter from Pakistan Sugar Mills Association, which stated that during a meeting held on May 3, 2017, it was submitted by Chairman PSMA that export of sugar should not be time bound as the buyers exploit timeframe to their advantage and the price so offered is not commensurate with the prevailing international market. Consequently, the sellers are constrained to make distress sales and remain at a loss to avail the rightful market opportunity.
The ECC meeting held on March 28, 2017 allowed export of 225,000 tons of sugar until May 31, 2017, however due to Pak-Afghan conflict in border areas, Chaman and Torkham borders are closed again. Most of the export shipments are in transit and the remaining contracted quantity is still lying in the godowns since the buyers are advising holding cargo until further instructions.
Under the circumstances, sugar industry has sought waiver of the stipulation of time to export or at least consider extending the period till June 30, 2017 for the approved quantity. Though the SAB meeting will firm up sugar production figures after getting final estimates from Provincial Cane Commissioners and Secretaries of Food, PSMA claims that production stood at 6.986 million tons in 2016-17 season of which Punjab accounts for 4.271 million tons, Sindh 2.250 million tons and KPK 0.465 million tons. Besides this, beet sugar of 25-30,000 tons will also be added and the total figure will exceed 7 million tons.
Sugar industry has expressed serious reservations at Commerce Minister Engineer Khurram Dastgir Khan for curtailing sugar export quantity being approved by the SAB. "We are waiting to hear about SAB meeting to present the final production figures for export of surplus quantity of sugar to facilitate timely payment to growers," PSMA said in its letter.
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