ISLAMABAD: The Sugar Advisory Board (SAB) meeting, on Tuesday, decided to conditionally allow export of 500,000 tons of refined sugar.
The board meeting was held here under the chairmanship of Federal Minister for Industries and Production Rana Tanveer Hussain which was also attended by other stakeholders including Pakistan Sugar Mills Associations (PSMA) to discuss and review the sugar stock availability, 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 three months and local commodity prices must remain stable so that the consumers do not suffer as witnessed in the past.
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During the meeting, the representatives of the PSMA informed the government officials that Pakistan this year has around 1.6 million tons of additional sugar 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. After conditional permission of 500,000 tons sugar export, the total quantity will reach 790,000 tons.
According to cane commissioner sugar off-take/ consumption report, in past 10 months a total of 5.595 million tons of sugar was consumed locally and so far the exporters have managed to export a total 139,000 million tons. The dada shows that on average 545,000 tons sugar was used including local consumption and exported quantity.
During 2023-24 crushing season, Pakistan has produced a total 6.841 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 823,000 million tons of carryover sugar stocks during the season, of which, 517,000 tons with Punjab mills, 191,000 tons with Sindh’s mills and 115,000 stocks by KPK mills, thus, having a total quantity of 7.664 million tons.
The meeting was informed that the sugar mills to start new sugarcane crushing season before November 21, 2024. The minister directed the members of PSMA to clear all the outstanding dues of the farmers before the start of the new sugarcane crushing season.
In June this year, the PSMA had suggested the government to allow export up to one million tons of refined sugar in the first phase which will bring around $650-700 million foreign exchange for the country and the rest of the 0.6 million tons of sugar be exported in two phases.
According to PSMA officials, last year sugarcane price was fixed at Rs350 per 40kg which in 2023-24 reached Rs450 per 40kg 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 to Rs6,400 per 50kg bag which is lowest in two years’ period.
The PSMA officials said locally, the sugar production price was around $503 per ton while in the international market, as of October 4, 2024,it stands at $581.5 per ton, therefore, export permission will benefit both the industry and the country. The meeting was further informed that in Pakistan, industrial use of sugar stands at 85 percent and the rest 15 percent was domestic use. Moreover, 18 percent general sales tax (GST) was imposed on sugar.
Copyright Business Recorder, 2024