Prime Minister Shehbaz Sharif unequivocally rejected the increase in sugar prices in the country on Thursday, instructing sugar mills to maintain an ex-factory rate of Rs140 for the entire year.
In a special meeting chaired by Prime Minister Sharif, the issues surrounding the export of sugar were thoroughly examined. Officials briefed the Prime Minister, warning that without the ability to export sugar, sugar mills could face bankruptcy in the upcoming season, potentially resulting in the closure of 40 mills.
It was highlighted during the briefing that sugar mills have already paid Rs760 billion out of the Rs800 billion owed to sugarcane farmers this season, leaving Rs40 billion still outstanding. The inability to export sugar could hinder the mills’ capacity to begin crushing operations in November.
Additionally, the briefing revealed that the country currently holds a surplus of 1.5 million tons of sugar. Exporting five million tons of this surplus could generate $26 million in revenue.
Prime Minister Sharif stated that the Economic Coordination Committee (ECC) would make the final decision regarding sugar exports. He instructed the ECC to carefully evaluate the national sugar stock and global market conditions.
The Prime Minister emphasized that any increase in domestic sugar prices is unacceptable and insisted that sugar mills must ensure the supply of sugar at the ex-factory price of Rs140 per kilogram throughout the year.
