Federal board for 40,000-tonne sugar export to Tajikistan

ISLAMABAD: The federal government’s Sugar Advisory Board (SAB) on Thursday recommended allowing the export of 40,000 tons of sugar, following a previous approval by the federal government for 150,000-tonne in June 2024. This new export permission if approved by the Cabinet will be specifically for Tajikistan.

The SAB’s recommendation was made during a joint meeting with the Cabinet Committee on Monitoring Sugar Exports, chaired by Federal Minister for Industries and Production Rana Tanveer Hussain. The SAB is a key body with representatives from federal and provincial governments, the sugar industry, and other stakeholders.

The Ministry of Industries and Production will present the proposal to the Economic Coordination Committee (ECC) of the Cabinet, which will review the latest developments in the sugar industry before making a final decision, Hussain said. If approved, the new export permission will specifically target Tajikistan. The decision on whether to approve or cancel the sugar export permit will be made by the ECC, Hussain said. The Sugar Advisory Board also recommended extending the export period from 45 days to 60 days, Hussain noted.

The Pakistan Sugar Mills Association (PSMA) reported that there has been no increase in the ex-mill price of sugar. They clarified that the retail price of sugar is unaffected by this change and urged the government to take measures to maintain retail prices.

Previously in June 2024, the government has conditionally approved the export of 150,000 metric tons of sugar, mandating the PSMA to maintain adequate local stocks to ensure stable domestic supply and prices.

Notably, in January 2023, the coalition government of Pakistan Democratic Movement (PDM), permitted export of 250,000 tons of sugar based on projections suggesting a surplus. That decision backfired as domestic prices soared from Rs100 per kg to Rs190 per kg by August 2023. By late August, the caretaker government revealed that national sugar reserves had plummeted to 2.3 million metric tons, insufficient to meet demand until the next crushing season.

This disclosure raised alarms about the potential misreporting of sugar production and consumption figures by both the industry and the previous government, further complicating the export narrative. Consequently, sugar exports were banned, and the sugar producers’ appeals for resumption faced outright rejection until the cane-crushing season concluded in March 2024.