Pakistan Earns Nearly $400 Million through Sugar Export, Claims PSMA
Published on: December 1, 2023.
Filed under:
ISLAMABAD – Pakistan Sugar Mills Association (PSMA) in the Punjab Zone highlighted the significant opportunity for Pakistan to export sugar and earn approximately USD 400 million in foreign exchange. Currently, international sugar prices are around USD 750, making it financially advantageous for Pakistan to make a timely decision to export sugar and bolster its reserves.
Back in March 2022, Pakistan witnessed a historic bumper sugar cane crop, resulting in a surplus of almost 2 million metric tons (MMT) and a sugar production of 8MMT. The sugar industry consistently requested the government to allow the export of surplus sugar, which could have earned nearly USD 1 billion. However, due to delays in verifying stocks and implementing a reliable Track and Trace System of the Federal Board of Revenue (FBR) for stock authentication, the opportunity to benefit from high sugar prices was lost. Eventually, sugar exports were permitted in January 2023, but the prices only reached approximately USD 450 per metric ton (MT).
The PSMA in the Punjab Zone emphasized that the international sugar market has always been volatile. Therefore, a timely decision by the government to permit the export of surplus sugar at the current high international prices would contribute much-needed foreign exchange and support the agricultural economy. Farmers cultivating sugarcane would receive international prices similar to rice, cotton, and maize, providing them with increased incentives to invest in their fields and enhance crop yields. By regularly exporting surplus sugar without any negative stigma, the total export value could easily reach USD 2 billion, without compromising other crops or affecting local needs. Additionally, the sugar industry will continue to contribute to import substitution worth USD 5 billion by producing sugar for domestic consumption.
It is crucial for Pakistan to seize the opportunity to export sugar and enhance its foreign exchange reserves. This not only benefits the agricultural industry but also boosts the overall economy. By making a timely and forward-thinking decision, Pakistan can capitalize on the current international sugar prices and strengthen its position in the global market.
Source: Source
