Lahore: The Pakistan Sugar Mills Association (PSMA) has renewed its plea to the government to authorize the export of 1.5 million metric tons of surplus sugar. This move, according to the association, could generate a billion dollars in foreign exchange for the country, reports Business Recorder.
In a statement issued here, the PSMA spokesman said that in the last meeting of SAB, Federal Minister for Industries and Production Rana Tanveer Hussain has admitted the role of PSMA in keeping the sugar price at low levels.
The sugar industry has been pleading with the government for quite some time to earnestly consider export of surplus sugar due to heavy losses incurred by the industry on account of increased production costs and carrying costs of surplus stocks of 2022-23 and 2023-24 crushing seasons. The continuous production of surplus sugar year after year, along with inadequate exports and domestic sales below the cost of production, had become unrealizable and nonviable for the industry.
The poor condition of wheat, cotton, and maize has badly hit the sugarcane farmers, and now they solely depend on sugarcane for their livelihood. On the other hand, though the cane payments to growers are made regularly and crushing is started on time, the current cash flow constraints faced by the sugar industry due to large inventories have become unmanageable.
The PSMA has also appealed to the Federal Government to allow exports of surplus sugar so that the mills could clear the outstanding cane price due to the farmers. The international sugar prices are falling day by day, and the country has already lost US$ 300 million of foreign exchange earnings due to delayed policy decisions.
PSMA has demanded that the government immediately approve the export of verified surplus stocks of 1.2 million metric tons up to July 15, 2024, which is estimated to increase to 1.5 million tons by the end of November. With little time left before the forthcoming crushing season, which is also expected to be a surplus season, the PSMA calls for a permanent and inclusive policy on the export of surplus sugar to ensure the industry continues contributing foreign exchange to the country’s agricultural and national economy.
