PSMA urges government for sugar export decision

Pakistan Sugar Mills Association (PSMA) is pushing for the export of 1.5 million tonnes of surplus sugar after facing resistance from the government. The demand for export was discussed in two meetings of the Sugar Advisory Board (SAB) in April, but no decision was reached due to concerns about local price stability and the need for further review of stock data.

The sugar prices in the country have been fluctuating, with a recent increase to Rs6970 per 50kg bag. The PSMA emphasizes that exporting surplus sugar could earn the country nearly $1 billion in foreign exchange. However, delays in decision-making could lead to missed opportunities as international sugar prices have decreased from $700 to $560 per metric tonne.

The sugar industry is facing financial challenges, exacerbated by expectations of increased sugarcane production in the upcoming year. The government is urged to establish a permanent policy for sugar exports to ensure a steady flow of foreign exchange.

The Federal Minister for Industries & Production emphasized the importance of meeting local sugar demand before considering exports to maintain price stability. The SAB recommended developing a mechanism with the PSMA to stabilize sugar prices before exporting surplus stock.