Pakistan : Govt delays sugar export decision to protect local supplies and prices
Pakistan has postponed a decision on sugar exports until closer to the next crushing season to safeguard domestic supplies and contain prices. Despite millers claiming a 1.3 million-tonne surplus and export potential worth $500 million, authorities will reassess stocks, demand, and prices before deciding.
The federal government has postponed a decision on allowing sugar exports, opting to review the matter closer to the next crushing season to reduce the risk of domestic shortages and higher retail prices.
According to a news report, a subcommittee headed by Deputy Prime Minister Ishaq Dar decided that any approval for exporting surplus sugar should be considered nearer the start of the next crushing season.
Officials said the delay was intended to ensure sufficient local supplies and avoid a repeat of last year, when sugar prices rose above Rs180 per kilogram after exports were permitted.
Sugar millers maintain that Pakistan currently has a surplus of 1.3 million metric tonnes and estimate that exports could generate around $500 million in foreign exchange.
The government, however, is also seeking to avoid a situation in which sugar would later have to be imported to rebuild domestic stocks.
Officials said mills could face difficulties in offering competitive prices to sugarcane farmers during the next crushing season if exports are not allowed.
The proposal is expected to be reconsidered as the crushing season approaches, when the government will reassess available stocks, domestic demand and price conditions before making a final decision.
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Source : Profit Pakistan Today
