ISLAMABAD: Despite the high domestic retail prices, which are currently at Rs160 per kg, the government permitted the export of 150,000 tonnes of sugar on Monday in response to pressure from millers.
The decision was made at the request of sugar mill owners who wanted to export their excess production, just two days before the national budget was due. The Pakistan Muslim League-N coalition government includes these millers.
This is the coalition government’s second move to permit sugar exports, which raised retail prices and accelerated inflation.
It’s interesting to remember, though, that Commerce Minister Jam Kamal refuted any such decision on the National Assembly floor at the same moment the Ministry of Industries sent the press release announcing the Sugar Advisory Board (SAB) decision.
Minister of Commerce notifies National Assembly that no decision has been made.
In response to a query from Agha Rafiullah of the PPP, the minister of trade described the reports as mere rumors.
The PPP lawmaker had questioned the minister about reports that the government had approved the sugar export and had voiced concern that the country might find itself in a similar predicament to the one it was recently in because the caretaker government had made a similar decision to permit the import of wheat at a time when the nation had an abundance of the crop.
The minister of commerce told the lower house that the member in question was making reference to rumors and that no decision had been made about sugar export.
According to the minister, the Economic Coordination Committee (ECC) of the Cabinet must provide its approval before decisions about sugar exports can be made; the SAB is the first forum to do so.
The PML-N-led administration of FY23 permitted the export of 212,896 tons of sugar over the course of three months.
According to reports, this action was taken to help PML-N and Pakistan People’s Party (PPP) members.
The average retail price of sugar increased to Rs195 per kg in September 2023 from Rs136 per kg in May 2023 as a result of extensive exports. In large places, the price of sweetener shot up to Rs230 per kg before the cane-crushing season started.
According to a formal statement from the Ministry of Industry, 150,000 tonnes of sugar might be exported with restrictions. Rana Tanveer Hussain, the federal minister for industries and production, presided over the SAB meeting where the decision was made.
The federal secretary for industries and production, as well as representatives from the federal and provincial levels and the Pakistan Sugar Mills Associations (PSMA), Kissan Itihad, and other stakeholders, were present at the meeting.
The availability of sugar stock, current market pricing, sugarcane rates, current global market sugar prices, and industry production costs were all on the agenda for the conference.
It is important to note that greater wheat imports were caused by officials’ inaccurate estimations of wheat production and inventories. Farmers suffered a loss as a result of an oversupply of wheat and unnecessary imports.
The official declaration stated that millers committed to keeping adequate local supplies on hand to guarantee a steady supply of the item at a reasonable price in local markets.
The government and the PSMA came to an agreement in this regard to guarantee a steady supply and pricing of sugar in the local market.
According to the federal minister, PSMA will pay farmers their outstanding debts first and would never raise the price of sugar extracted from mills.
In two weeks, he said, the SAB will assess sugar pricing and market stability once more. According to him, the country’s stock availability and price stability will determine sugar exports in the future.
