Board recommends export of another 100,000 tonnesof sugar

With this latest recommendation, total approved sugar exports stand at 290,000 tons

By Israr Khan
August 22, 2024
Workers prepare sugar bags to be distributed to people in need, ahead of the Holy month of Ramadan at a warehouse in Islamabad, Pakistan. — AFP/File
Workers prepare sugar bags to be distributed to people in need, ahead of the Holy month of Ramadan at a warehouse in Islamabad, Pakistan. — AFP/File

ISLAMABAD: The federal government’s Sugar Advisory Board (SAB) on Wednesday recommended allowing the export of 100,000 metric tons of sugar, following earlier approvals of 40,000 tons in August and 150,000 tons in June 2024.

With this latest recommendation, the total approved sugar exports stand at 290,000 tons. Of this, 150,000 tons were approved by the federal cabinet and 40,000 tons were specifically allocated for export to Tajikistan.

For the final approval of 40,000 tons, the Ministry of Industries and Production has submitted a summary to the Economic Coordination Committee (ECC) of the Cabinet, scheduled for Thursday (today), an official from the ministry confirmed.

Minister for Industries and Production Rana Tanveer Hussain chaired the SAB meeting, where the recommendation for exporting surplus sugar was made.

Hussain emphasized that the country has an ample sugar supply and said no increase in the ex-mill price of sugar would be permitted as a result of the export. The Pakistan Sugar Mills Association has agreed to maintain the current ex-mill sugar prices.

The meeting was attended by Federal Minister for Commerce Jam Kamal Khan, secretary of industries and production, senior federal officials, representatives from the provinces, members of Pakistan Sugar Mills Association, Provincial Cane Commissioners, Federal Board of Revenue officials and growers.

Previously, on June 25, 2024, the federal cabinet approved the export of 150,000 metric tons of sugar and established a Cabinet Committee on Monitoring Sugar Exports to oversee pricing and compliance. This committee is responsible for ensuring that ex-mill sugar prices do not exceed Rs140 per kilogram, with retail prices capped at the Sensitive Price Indicator (SPI) benchmark as of June 13, 2024, plus Rs2. If prices surpass these limits, the committee will direct the Ministries of Industries and Commerce to suspend further exports.

In August, the government approved the export of 40,000 tons of refined sugar to Tajikistan at preferential prices under a government-to-government arrangement facilitated by the state-run Trading Corporation of Pakistan (TCP).