Islamabad: On Thursday, the government rejected a request from the Pakistan Sugar Mills Association (PSMA) to export an additional 500,000 tons of sugar in December, stating that the first export quota must be completed before any new permissions could be granted.
At a meeting of the Sugar Advisory Board, chaired by Industries Minister Rana Tanveer Hussain, it was decided that all sugar mills across the country must start crushing sugarcane by November 21. Officials warned that any mills missing this deadline would face strict action.
During the meeting, the PSMA requested approval for additional sugar exports. In the short term, the mills emphasized the need to ensure the continued production of exportable surpluses within the sugar industry. They highlighted the importance of promptly authorizing the export of 500,000 tons of sugar, with a 180-day deadline. The PSMA also suggested to the government that China has an annual import demand of 6 million tons. They requested the government to support exports through government-to-government (G2G) or government-to-business (G2B) agreements, as stated in a press release.
In the long term, they proposed that the government deregulate the sugar industry fully. They further suggested it remove the Sugarcane Act altogether and take sugar off the list of essential commodities. This would then allow the industry to operate freely within its proper framework of competitive market forces.
However, Industries Minister Hussain clarified that no more export permissions would be granted until the completion of the allocated export quota. The meeting also discussed the stock position for the crushing season.
The Commerce Minister, Jam Kamal Khan, who attended the meeting, informed other officials about the current estimates of the sugarcane crop. The board is satisfied with current sugar prices in the local market, though it says the current price levels have declined.
