ISLAMABAD: The Sugar Advisory Board (SAB) has approved the export of up to 40,000 tons of sugar to Tajikistan on a government-to-government basis.
This decision was made following permission granted by the Cabinet’s Economic Coordination Committee (ECC).
The SAB meeting was chaired by the Federal Minister for Industries and Production, Rana Tanveer Hussain. After receiving ECC’s approval, the SAB has allowed the export of 40,000 metric tons of sugar to Tajikistan.
The ministry has also directed the Pakistan Sugar Mills Association (PSMA) to clear outstanding payments owed to sugarcane growers as soon as possible. Additionally, it was decided that local district governments will be responsible for setting the retail price of sugar.
The meeting revealed that Pakistan currently has a sugar stock of 2.8 million tons in storage.
On August 1, 2024, the SAB recommended the sugar export to Tajikistan, and the ministry decided to present updates on the sugar industry to the ECC for a decision regarding the export.
The minister also noted that the SAB recommended increasing the export period from 45 to 60 days.
During the meeting, representatives of the PSMA stated that there had been no increase in the ex-mills price of sugar, and this had no bearing on the retail price of the commodity.
The sugar industry urged the government to take steps to maintain the retail price of sugar. They clarified that the PSMA has no role in setting the retail price of sugar.
The PSMA reported that there has been no increase in the ex-mill price of sugar. They emphasized that the retail price of sugar is unaffected by this and called on the government to keep the retail prices stable.
Previously, in June 2024, the government had conditionally approved the export of 150,000 metric tons of sugar. This was subject to the PSMA maintaining adequate local stocks to ensure a stable domestic supply and prices.
In January 2023, the previous coalition government of the Pakistan Democratic Movement (PDM) had permitted the export of 250,000 tons of sugar based on projections suggesting a surplus.
However, this decision backfired as domestic sugar prices jumped from Rs100 per kg to Rs220 per kg in various parts of the country and Rs170-190 in major urban centers by August 2023. By late August 2023, the caretaker government revealed that the national sugar reserves had plummeted to 2.3 million metric tons, which was insufficient to meet demand until the next crushing season.
