ISLAMABAD: On Monday, Commerce Minister Jam Kamal held separate meetings with producers of ethanol and sugar mills. The producers of ethanol requested that molasses be treated as a value addition before it is exported, while the producers of sugar mills wanted unlimited exports of molasses.
The purpose of the sessions at the ministry of commerce was to promote discussion and identify workable solutions for the problems these sugar sectors were facing.
Attendees at the conference included senior officials from the ministry of commerce as well as members from the Pakistan Sugar Mills Association (PSMA) and the Ethanol Manufacturer Association.
The PSMA delegates expressed concerns about the planned hike in taxes on molasses exports, according to an official statement. They emphasized how crucial it is to support molasses exports in order to increase foreign exchange reserves.
They emphasized how crucial it is to upgrade infrastructure in order to increase terminal capacity and provide easier access to global markets. One byproduct of sugarcane that sugar millers export is molasses.
The export of molasses decreased by 36.9% to 57,023 tonnes in 8MFY24 as compared to 90,472 tonnes in the same period the previous year, according to PBS data.
Molasses was exported by Pakistan to Ireland, South Korea, Italy, the Netherlands, and the United Kingdom. Pakistan imported molasses primarily from Turkiye and the United Kingdom at the same time.
The trade minister reassured the businessmen during the talks that he would stand up for their rights and take care of their issues in order to assist local industry and boost export volume in order to boost foreign exchange reserves.
In the meanwhile, ethanol sector officials emphasized the need for long-term legislative actions to maintain the domestic industry.
They argued against permitting large exports of molasses, pointing out the negative effects on ethanol production locally. They pleaded with the government to allow raw sugar imports in order to continue sugar production.
Mr. Kamal informed attendees that the administration was committed to giving their concerns first priority in response to their worries. He promised to step up efforts to address these issues as soon as possible, highlighting the significance of promoting industrial growth and increasing foreign reserves.
At the end of the talks, everyone agreed to cooperate in order to overcome challenges and create an atmosphere that will support the sugar and ethanol businesses’ sustainable expansion.
Mr. Kamal reaffirmed his unwavering support for the growth and prosperity of these crucial industries, highlighting their importance in advancing economic development and bolstering resilience within the country.
