psma Punjab Zone Urges Government to Seize Opportunity for Surplus Sugar Export
Published on: December 1, 2023.
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The Pakistan Sugar Mills Association (Punjab Zone) has emphasized the potential benefits of exporting sugar as international prices currently reach approximately USD 750/tonne. With a timely decision to seize this opportunity, Pakistan could earn nearly USD 400 million in foreign exchange, thereby strengthening its reserves.
In a press release issued on Monday, the association highlighted that in March 2022, the sugar industry had a surplus of nearly 2 million metric tonnes (MMT) due to a bumper sugarcane crop and sugar production of 8MMT. At that time, the industry had requested permission from the government to export the surplus sugar, which could have yielded nearly USD 1 billion in revenue.
Unfortunately, due to delays in verifying the stocks and the implementation of the Track and Trace System of the Federal Board of Revenue (FBR), the opportunity to capitalize on high international sugar prices was missed. It was not until January 2023 that sugar exports were allowed, and by then, the prices had dropped, resulting in only USD 450 per metric tonne (MT) of sugar.
The PSMA-PZ reiterated 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 not only bring much-needed foreign exchange but also support the agricultural economy.
Allowing sugarcane farmers to benefit from international price trends similar to rice, cotton, and maize would encourage them to invest more in their fields and increase their yield. By regularly exporting surplus sugar and eliminating any negative stigma associated with it, the country could potentially earn up to USD 2 billion without compromising the production of other crops or compromising local needs. Furthermore, the industry would continue to provide USD 5 billion worth of import substitution by producing sugar for domestic consumption.
Source: [UrduPoint](https://www.urdupoint.com)
