ISLAMABAD: The Ministry of National Food Security and Research told the National Assembly that the government had permitted sugar exports during the 2023-24 crop year due to surplus stocks.
In its report, the Ministry of National Food Security and Research said the local consumption demand was estimated at 6.4 million metric tonnes (MMT), with production at 6.7 MMT. Adding 0.823 MMT from carry-forward stocks brought total availability to 7.6 MMT.
In response to a query from Asif Khan, the ministry submitted the report and noted that the forecast for sugar production in the 2024-25 crop season was higher, owing to a 1.2pc increase in sugarcane cultivation over the previous year. However, the crop was adversely affected by climatic conditions, including a heat wave and crop disease.
The government’s decision to allow exports of surplus sugar from the 2023-24 season was made on the recommendations of the Sugar Advisory Board, under the Ministry of Industries and Production. Exports proceeded in four phases: 0.150 MMT on June 13, 2024; 0.100 MMT in August 2024; 0.040 MMT in August 2024; and 0.500 MMT in October 2024. Actual production fell short of estimates by around 1.0 MMT, leading to a price increase.
The government promptly introduced administrative measures to secure the supply chain and replenish domestic stocks, including authorising sugar imports with duty exemptions and reduced taxes to provide relief to consumers.
Exports were handled by sugar mills according to quotas allocated by provincial governments with surplus stocks. Current imports are being managed directly by the government, without involving sugar mills.
