ISLAMABAD: The Pakistan Sugar Mills Association (PSMA) from the Punjab Zone has once again called on the government to authorize the export of surplus sugar, citing significant economic benefits and industry relief. In a recent meeting of the Sugar Advisory Board (SAB) in Islamabad, PSMA reiterated its request to export 1.5 million metric tons of surplus sugar, which could generate $1 billion in foreign exchange for the country.
A PSMA spokesperson highlighted that during the SAB meeting, Federal Minister for Industries and Production Rana Tanveer Hussain commended the PSMA’s efforts to stabilize sugar prices.
The sugar industry has faced persistent challenges due to rising production costs and financial strains from holding excess stocks from the 2022-23 and 2023-24 crushing seasons. The continuous production of surplus sugar, coupled with domestic sales below production costs, has rendered the industry increasingly unsustainable.
Sugarcane farmers, who have suffered due to poor conditions in other crops like wheat, cotton, and maize, are now heavily dependent on sugarcane for their livelihood. While cane payments have been made on time and crushing operations have commenced as scheduled, the industry’s financial constraints due to the surplus inventory are becoming untenable.
The PSMA is urging the Federal Government to allow the export of the surplus sugar to enable mills to fulfill cane payments and alleviate financial pressures. With international sugar prices declining and $300 million in potential foreign exchange already lost due to delayed policy decisions, the PSMA is advocating for urgent government action.
The association is also calling for a permanent and comprehensive policy on surplus sugar exports to ensure the industry’s continued contribution to the national economy. They request immediate permission to export 1.2 million metric tons of surplus sugar as of July 15, 2024, with expectations for the surplus to reach 1.5 million tons by the end of November, ahead of the next crushing season.
