Islamabad, August 21, 2024 – Pakistan has made a significant move to capitalize on its surplus sugar reserves by deciding to export 100,000 metric tons of sugar. The decision was reached during a crucial meeting of the Sugar Advisory Board (SAB) held on Wednesday, chaired by Minister for Industries and Production, Rana Tanveer Hussain.
The meeting, attended by a host of high-ranking officials, including Federal Minister for Commerce, Jam Kamal Khan, the Secretary of Industries and Production, provincial representatives, members of the Pakistan Sugar Mills Association (PSMA), Provincial Cane Commissioners, and officials from the Federal Board of Revenue (FBR), culminated in the recommendation to export the surplus sugar. This recommendation was promptly forwarded to the Economic Coordination Committee (ECC) of the Federal Cabinet for final approval.
During the meeting, the current sugar stock levels and pricing structures within the country were meticulously reviewed. Minister Rana Tanveer Hussain emphasized that Pakistan has an ample supply of sugar, enough to justify the decision to export. He assured that this move would not result in any increase in the ex-mill price of sugar, a concern for both consumers and producers alike.
The Pakistan Sugar Mills Association (PSMA) has pledged to maintain the ex-mill price of sugar, adhering to the terms agreed upon earlier. This assurance is expected to alleviate any concerns regarding potential price hikes in the domestic market following the export decision.
Rana Tanveer Hussain also underscored that the export of sugar will be conducted under strict terms and conditions set forth by the Federal Cabinet. This ensures that the domestic market remains stable and that the export does not lead to any adverse effects on local sugar availability or prices.
The decision to export sugar comes at a time when Pakistan’s sugar industry has been grappling with surplus production, leading to concerns about storage and financial burdens on sugar mills. By exporting this surplus, Pakistan aims to not only ease the pressure on local producers but also generate valuable foreign exchange, which can contribute to the country’s economic stability.
The final nod from the ECC is expected soon, following which the export process will commence. This move is seen as a strategic step towards balancing domestic supply and demand while taking advantage of global market opportunities.
