Pakistan eyes sugar exports to India as mills face surplus stocks, liquidity pressure
Pakistan’s sugar industry has urged the government to allow exports of up to 1.2 million tonnes to India, citing surplus stocks of over 1.2 million tonnes and potential foreign exchange earnings of up to $600 million. Pakistan’s total sugar stocks stood at 2.81 million tonnes as of August 15, while the government separately approved tenders to export 108,000 tonnes of surplus sugar held by the Trading Corporation of Pakistan.
A senior representative of the Pakistan Sugar Mills Association has called on the government to permit the export of up to 1.2 million tonnes of surplus sugar to India, arguing that the move could reduce excess inventories, improve the financial position of mills and generate as much as $600 million in foreign exchange, The News reported.
Ch Muhammad Waheed of Hunza Sugar Mills Ltd. said the industry was carrying more than 1.2 million tonnes of surplus stocks, creating mounting financial pressure on mills as they prepare for the next crushing season.
The proposal comes at a time when India is reportedly considering imports of around one million tonnes of sugar to curb rising domestic prices. Waheed argued that Pakistan could be well positioned to supply the Indian market because of its geographical proximity, which could translate into lower freight costs compared with more distant suppliers.
Pakistan’s sugar stocks stood at 2.81 million tonnes as of Aug. 15, according to Waheed, while domestic consumption averages around 550,000 tonnes a month. Based on current inventory levels, he said the country had sufficient supplies to meet domestic demand until at least the end of December 2026, leaving scope for exports without compromising a strategic reserve.
Separately, the Economic Coordination Committee of Pakistan’s Cabinet approved international tenders for the export of 108,000 metric tonnes of surplus sugar at its meeting on Wednesday.
The meeting, chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb, considered a proposal from the Ministry of National Food Security and Research seeking approval for the export.
The sugar earmarked for export is currently held by the Trading Corporation of Pakistan. It represents the remaining quantity from the 300,000 tonnes of sugar imported last year following a recommendation by the Steering Committee on Sugar, which had been constituted with Cabinet approval.
The government said the international tender process for the 108,000 tonnes would be carried out in accordance with the Public Procurement Regulatory Authority Rules, 2004.
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Source : ChiniMandi
