Pakistan : Sugar import approval delayed as prices stay above government cap
The Pakistani government has postponed approving raw sugar imports for re-export, despite ongoing high domestic sugar prices. Deputy Prime Minister Ishaq Dar stated that the policy is still under development and awaits presentation for approval. During Ramadan, sugar prices surged to Rs185 per kilogram, prompting government intervention to cap prices at Rs164 per kilogram for one month. Concerns remain that prices may rise again after April.
The Pakistani government has yet to approve the import of raw sugar for re-export, amid ongoing concerns about high sugar prices. Sources say the government recently deferred the decision on raw sugar imports. Deputy Prime Minister Ishaq Dar confirmed that the policy on raw sugar is still under progress and has not been presented for approval.
Sugar prices in the domestic market have surged recently, reaching Rs164 per kg during Ramadan, despite government efforts to control them. The government intervened by capping prices at Rs164 per kg for one month, but there are concerns that prices may rise again after April. The increase in prices has highlighted the need for better market management.
Pakistan, the seventh-largest sugar producer in the world, has a sizable sugar industry with 82 mills. However, the country faces challenges due to fluctuating sugarcane production and idle mill capacity. In some years, the country has to import sugar to meet domestic demand, while in others, it has surplus production that can be exported.
The government’s plan to import raw sugar for refining aims to stabilize the domestic market and boost exports. However, the existing import duties and taxes on raw sugar are limiting the feasibility of this option. Pakistan’s proximity to markets like China, Afghanistan, and Central Asia offers a potential competitive advantage for sugar exports if the refining process is properly implemented.
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Source : Daily Times
