Islamabad, June 10, 2024 – Pakistan has conditionally approved the export of 150,000 metric tons of sugar, following a request from the Pakistan Sugar Mills Association (PSMA). This decision aims to balance the needs of local markets while fulfilling the demands of sugar producers.
The government announced the decision on Monday, stipulating that local sugar stocks must be maintained to ensure a stable supply and price within domestic markets. This move was formalized during a meeting of the Sugar Advisory Board, chaired by Minister of Industry and Production Rana Tanveer Hussain.
An agreement outlining the terms of the export was signed between the government and the PSMA. Minister Hussain emphasized that ex-mill sugar prices would remain unchanged and that all outstanding payments to farmers would be prioritized.
“The sugar advisory board will review sugar prices and market stability every two weeks to ensure there are no disruptions,” Minister Hussain stated. He underscored that future sugar exports would hinge on the stability of local prices and the availability of sufficient stocks.
The decision comes after the PSMA’s request to export a substantial 1.5 million metric tons of sugar. However, the government’s initial allowance is a cautious 150,000 metric tons, reflecting concerns about maintaining local market stability.
The sugar industry plays a vital role in Pakistan’s economy, and this export decision seeks to balance export opportunities with domestic needs. Ensuring a steady supply at reasonable prices within the country remains a top priority for the government.
Minister Hussain assured that this export move would not disrupt local markets. “We are committed to protecting local consumers and farmers. This export is a carefully considered step, and we will monitor its impact closely,” he said.
The sugar advisory board’s fortnightly reviews will be crucial in assessing the market’s response to this export decision. These reviews will help determine any further export allowances and ensure that the domestic sugar market remains stable.
As the global demand for sugar continues to rise, Pakistan’s ability to export excess sugar could provide a boost to its economy. However, this will be carefully managed to ensure that the benefits do not come at the expense of local market stability and consumer affordability.
