Pakistan approves additional export of 500,000 metric tons of surplus sugar

Pakistan's Economic Coordination Committee (ECC), chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, has approved the additional export of 500,000 metric tons of surplus sugar.

The Ministry of Industries and Production submitted a summary seeking permission for the additional export, citing sufficient surplus stocks even after accounting for proposed and ongoing exports, the requirement for the remaining two months of the current crushing year, and the maintenance of strategic reserves.

Data provided by the provinces and the Federal Board of Revenue (FBR) indicated that the existing stock of sugar stood at 2.054 million metric tons as of September 30, 2024, with total consumption during the last ten months of the current crushing year at 5.456 million metric tons.

The expected offtake for the next two months is projected to be around 0.900 million metric tons.

After considering the quantity yet to be exported as per earlier ECC decisions, the remaining expected stocks would be 1.014 million metric tons as of November 30.

With one month's offtake earmarked as a strategic reserve, a surplus of 0.564 million metric tons would still be available.

The ECC approved the proposal for the additional export with modifications, including an undertaking by the Pakistan Sugar Mills Association (PSMA) that their mills will commence production by November 21, for the next crop year.

Exporters must ensure that consignments are shipped within 90 days of quota allocation by the respective Cane Commissioners. The permission may be revoked by the Sugar Advisory Board (SAB) to maintain market stability and retail prices.

The ECC also directed the cabinet committee on monitoring sugar exports to continue monitoring and updating the cabinet on the demand, supply, and price situation of sugar in the country.

Additionally, the ECC approved a summary submitted by the Ministry of Energy (Power Division) seeking a compensation package for the deceased Chinese employees of Port Qasim Electric Power Company (Private) Limited.