Lahore: The Pakistan Sugar Mills Association (Punjab Zone) has urged the government to establish a permanent window for exporting one million tons of sugar annually, citing the increasing production of sugarcane and sugar each year, according to the media reports.
This call to action emerged from a general body meeting of the Pakistan Sugar Mills Association (Punjab Zone) held on Tuesday, where attendees lauded the government’s effective measures against the smuggling of essential commodities. The meeting underscored that curbing sugar smuggling could facilitate its export, thereby bolstering the country’s foreign exchange reserves.
Discussions at the meeting also touched upon correspondence with the federal ministers of finance and commerce. As per report, the domestic sugar industry achieved a surplus production of sugar during the recent crushing season (2023-24). With total available sugar standing at 7.5 million metric tons against an annual domestic consumption of 6.00 million metric tons, Pakistan boasts a surplus of 1.5 million metric tons, potentially translating into $1.2 billion in foreign exchange earnings.
Furthermore, compared to the previous crushing season (2022-23), sugar mills paid higher prices for sugarcane in the current season, leading to increased production costs for sugar. Consequently, the meeting stressed the need for a policy facilitating the export of at least one million metric tons of surplus sugar across two installments, without any subsidies, to capitalise on favourable international market prices.
Urging the government to allocate an annual quota of one million tons for sugar exports, the meeting also highlighted the need to address the sugar industry’s financial challenges. It advocated for exporting additional sugar without subsidies, while also exploring opportunities for exporting sugar by-products such as ethanol.
