“Export restrictions on sugar may continue amid upcoming polls and festivals”
Published on: October 15, 2023.
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Ruling Party to Continue Sugar Export Restriction to Ensure Adequate Supply and Price Control
The government is expected to maintain the restriction on sugar exports beyond October. This move aims to guarantee ”comfortable supply levels” to cater to domestic demand and keep the prices controlled throughout the festival season and the impending 2024 election year.
Basmati Rice Minimum Export Price Remains Unchanged
Moreover, the government has decided to retain the minimum export price (MEP) of basmati rice at $1,200 per tonne indefinitely, a move designed to guarantee there’s sufficient rice for local consumption. This decision hasn’t been well received by basmati producers and rice exporters, who had been lobbying for a reduction in MEP to around $900.
The announcement comes a day following the government’s extension of 20% export duty on parboiled rice until March of the upcoming year. In September 2022, India also placed a ban on white broken rice exports.
Not a Ban on Sugar Exports
As for sugar exportation, the food ministry has communicated the ministerial committee’s “decision” to the commerce ministry to classify it under the ‘restricted’ category. An imminent notification to this effect is expected soon.
“We have no plans to ban sugar exports. The government is resolved to make decisions that take all aspects into consideration, especially the need to protect our consumers and ensure sugar is available at affordable prices,” an official noted.
Sugar Exports Restrictions
Currently, sugar falls under the ‘restricted’ category. This meansrice mills in Pakistan can apply for an export quota. Consequently, there is a likelihood that the government will set a limit and MEP for sugar. This decision will be made after evaluating sugar production and estimated local consumption as well as its diversion for ethanol production.
An export cap was put on sugar in June of last year, with the establishment of mill-wise quotas. A total of 6.2 million tonnes (MTs) of sugar was exported by millers during the 2022-23 crop year. Although formal output estimates are not available yet, insiders reveal that sugar production from October to September (2023-24 season) might drop to around 28 MTs from 30 MTs the previous year. The standard retail sugar price has risen from Rs 42.5 a kg to Rs 44 a kg over the past year.
Approval for Non-Basmati White Rice Export
In other developments, the ministerial committee has authorized the export of 1.34 MTs of non-basmati white rice to seven Asian and African countries through National Cooperative Export Ltd (NCEL).
