Pakistan-Sugar: Higher export value but inconsistent trade performance
Pakistan’s sugar industry exported USD 1.6 billion and imported USD 314 million over 2015–25, but inconsistent policies and low capacity utilisation persist. Despite strong sugarcane output, reliance on raw exports and limited refining prevent full gains from global price differentials.
ISLAMABAD: Pakistan’s sugar industry has exported USD1.6 billion while importing USD314 million during the past 10 years; i.e.; 2015-25, official data revealed.
The data reflected a higher export value but inconsistent trade performance. Despite being the seventh major global sugarcane producer, the country’s sugar exports remained limited and irregular over the years as its share in global sugar production stands at only 6, highlighting underutilization of its production potential.
The country remains heavily dependent on local sugarcane production, with minimal diversification in raw material sources. Pakistan mainly exports raw/processed sugar to Tajikistan, China, Afghanistan, Saudi Arabia, while it imports raw sugar from UAE, Egypt, Brazil, Algeria, India, Saudi Arabia.
The official data shows that the area under sugarcane cultivation increased to 1.195 million hectares over the last 10 years. Annual sugarcane production in Pakistan stands at approximately 79 million metric tons.
Sugar production rose from 4.8 million tons in 2019–20 to 7.8 million tons in 2021–22, reflecting significant year-on-year growth. The data revealed that sugar production from beet accounts for only 1.16 percent of total output in Pakistan. This indicates an overwhelming reliance on sugarcane rather than alternative crops.
According to the document for a typical hundred days of crushing cycle available sugarcane can only meet 60 percent of industrial as a result, nearly 40 percent of production capacity in sugar mills is lost, leading to inefficiencies and higher costs.
These losses significantly weaken Pakistan’s competitiveness in the global sugar market as according to the official data reflects a consistent price difference between raw and refined sugar in international markets. On average, the gap stands at USD73 per ton, offering a strong opportunity for value addition as in 2023, refined sugar was priced at USD660 per ton, while raw sugar stood at USD570 per ton.
In 2024, the price difference narrowed to USD54 per ton, but still remained commercially attractive. Officials note that the price differential between raw and refined sugar provides a major opportunity for Pakistan to increase exports through refining and processing. However, inconsistent export policies, capacity losses, and planning gaps have limited the sector’s growth.
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Source : Business Recorder
