Govt likely to allow exports of additional 600,000T sugar

ISLAMABAD: The commerce ministry on Tuesday recommended the government to allow an additional export of 600,000 tons of sugar, in addition to the 425,000 tons already permitted, given the price of the commodity remains stable in the domestic market, a statement said.

The decision was taken during a monthly meeting of the Inter-Ministerial Sugar Monitoring Committee (IMSMC), held at Ministry of Commerce under the chair of Minister for Commerce Khurram Dastgir Khan.

“The ministry is striving for maximum exports of sugar after fulfilling domestic needs,” Khan said. He observed that in 2016/17, there has been a record sugar production in the history of Pakistan, as well as bumper crops of wheat, maize, and potatoes. The IMSMC also observed that out of the total quantity of 425,000 tons, allowed for export by the ECC during the current crop year, a total of 391,000 tons sugar quota has, so far, been allocated by State Bank of Pakistan (SBP) and around 348,000 tons has been exported.

In view of abundant surplus sugar stocks available in the country as reported by Sugar Advisory Board of Ministry of Industries, the committee has decided to recommend to the ECC to allow additional quantity of sugar. Khan said the ministry has successfully reduced sugar price, which has declined for the first time this Ramazan contrary to the previous years’ trend.

  “In 2016, the sugar prices reached up to Rs70/kg in Ramazan, but in this holy month the prices are stable around Rs56/kg, which is benefiting the consumers throughout the country and has helped in controlling inflation,” the commerce minister said.

The committee was briefed that the sugar price in the domestic market according to the Sensitive Price Index for the week ending 15th June, 2017 was Rs56.30/kg, which was 11.1 percent lower than the level of December 15, 2016, when the export of sugar was allowed by the ECC.

“In case of any abnormal increase in the domestic price of sugar, the IMSMC would recommend to the ECC the stoppage of further exports,” the committee observed

It added that once 450,000 tons out of the allowed quantity of 600,000 tons+, is exported, the IMSMC will meet again to review the stock/export situation and recommend enhancement of export quantities, if deemed appropriate.