ECC gives nod to export of 100,000MT sugar

• Committee notes sugar situation will be reviewed fortnightly.
• PSMA commits existing price of sugar will not increase.
• Govt concedes to sugar mill owners demand.

Fulfilling the demand of sugar mill owners, the Economic Coordination Committee (ECC) Thursday gave go-ahead for the export of the sweetener up to 100,000 metric tonnes, however, the decision can increase the purchasing cost of the essential commodity in the country.

The decision comes after a summary moved by the Ministry of National Food Security and Research was approved by the ECC under the chair of Federal Minister for Finance and Revenue Senator Ishaq Dar.

The committee noted that the situation will be reviewed on fortnightly basis. The Pakistan Sugar Mill Association (PSMA) was directed, and they also committed, to ensure that the existing price of sugar will not increase in the domestic market for at least till January 31, 2023.

Last month, the association warned the government that the sugarcane crushing season will not start until the export of one million tonnes of sugar is allowed.

The officials had highlighted that it was necessary to start the crushing season by November 30, but sugar mills already had surplus stocks from the last season, amounting to more than one million tonnes, which was enough to meet the national sugar requirements till January 15.

Sources told The News that in the previous crushing season, the country produced nearly 7.9 million metric tonnes of sugar, which was a historic high and far more than local demands.

It should be noted that the average sugar consumption in Pakistan is estimated at 596,000 tonnes per month.

The government’s assessment of flood devastations suggested that due to the widespread damage to the sugarcane crop, sugar production would be 260,000 tonnes less than the annual consumption requirement next year.

Owing to the delay in starting the crushing season, farmers have not been able to plant wheat which may pose food security challenges next year.

During the meeting today, the ECC also approved technical supplementary grants for the following:

• Rs7 million in favour of the Ministry of Climate Change
• Rs743.57 million in favour of the Ministry of Housing and Works for execution of its development schemes