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Commerce Minister Engineer Khurram Dastgir Khan on Thursday blocked a proposal of Sugar Advisory Board (SAB) regarding export of additional 1.2 million tons quantity. The additional quantity was worked out at a meeting of SAB on April 17, 2017 represented by the Ministries of Commerce, Industry and National Food Security & Research, and provincial governments.
According to an official statement issued by the Commerce Ministry, the monthly meeting of the Inter-Ministerial Committee, tasked by the ECC of the Cabinet to monitor the supply and price situation of sugar, was held on May 25 at the Ministry of Commerce with Engr Khurram Dastgir Khan, Minister for Commerce, in the chair. The committee noted with satisfaction that the country had achieved the record level of sugar production during the current crop year. On one hand, the sugarcane farmers have benefited from the stable prices of sugarcane and on the other, the consumer has been passed on the dividends of record sugar production in the form of low price of sugar in the domestic market on the occasion of the Holy month of Ramazan.
The meeting was informed that the price of sugar in the domestic market, according to the Sensitive Price Index (SPI) for the week ending 18th May 2017, was Rs 58.09 per kg which was 7.2 percent lower than the level of December 15, 2016 when the export of sugar was allowed by the ECC.
The meeting was also informed that the SAB in its meeting held on May 17, 2017, recommended allowing further exports of sugar beyond 425,000MT already allowed by the ECC during the current crop year. The committee noted that out of the allowed quantity, a quota of 35,000MT was unutilised and the shipments of the allocated quota were also in the pipeline.
The official statement further stated that in order to maintain the price stability during Ramazan, the committee decided to defer the decision on allowing further export of sugar till the last week of Ramazan. Meanwhile, the ECC will be recommended to extend the time limit for export of remaining quantity of sugar from the already allowed quota of 425,000MT till July 31, 2017.
Informed sources told Business Recorder that Pakistan Sugar Mills Association (PSMA) had been asked to submit a written assurance that the prices would not increase in Ramazan but the Association was hesitant to give any such assurance. However, when contacted Chairman PSMA Javed Kayani said the prices were determined by the market forces, adding how the Association could give any such assurance which was contrary to the competition laws.
He was of the view that sugar industry had been destroyed due to delayed decisions by the commerce minister regarding export. The country's sugarcane growers are crying for payment from mills which are unable to clear the payment until their stocks are sold. "Had permission to export sugar been given at the beginning of the season when international market was around $540 per ton, the industry would have exported the entire quantity without seeking any subsidy. Twice the Commerce Ministry without understanding the repercussions curtailed the quantity of export to the detriment of the growers and member mills lost the opportunity to avail good rates to sell sugar," he added.

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