Sugar production

According to some media reports, the Federal Ministry of Commerce has recommended the government to allow the export of 0.6 million tonnes of sugar, in addition to the 0.425 million tonnes already permitted, given the price of the commodity remain stable in the domestic market. The decision has been taken during monthly meeting of the Inter-Ministerial Sugar Monitoring Committee (IMSC) held recently at the Ministry of Commerce. The Ministry has successfully controlled sugar price at Rs56/kg in the holy month of Ramazan benefitting the consumers. The Pakistan Sugar Mills Association (PSMA) has demanded the Ministry of Commerce for rebate of Rs15 per kg on the export of the additional 0.6 million tonnes of sugar as the international price has dropped from $540 per tonne to $400 per tonne.

According to the PSMA, export of sugar would not be possible without the export rebate. Last year, the unprecedented sugar production of 7.05 million tonnes during the 2016-17 crushing season was the result of the government-approved export subsidy of Rs13 per kg. This facilitated mills to pay farmers their dues on time, in addition to earning foreign exchange for the country. The government should consider the demand of the PSMA for allowing subsidy on the export of sugar and enhancing the export quota of sugar. This will not only enable sugar mills to pay the outstanding dues of farmer, but also help earn the much needed foreign exchange for the country, which, as a result, may reduce trade deficit.

Khan Faraz

Peshawar