Authorities seem to be taking time to issue SRO with regard to export of 0.1 million tons of sugar delayed as the are in this regard, industry sources told Business Recorder on Wednesday over delay. The Economic Co-ordination Committee (ECC) has allowed export of 100,000 tons of sugar.
Sources said that due to delay in the issuing of SRO, the millers may not be able to export the commodity as sugar from Brazil is set to come in the international market by the first week of March. "Brazil is a major sugar contributor in international market. No one would take our sugar when Brazil would bring its sugar in the market. So, the government should issue SRO notification as early as possible to help the millers in this regard", said an official of Pakistan Sugar Mills Association (PSMA).
He said that export of the commodity would help in easing liquidity issues of industry. "The export of the present surplus stock would enhance the liquidity of sugar mills which would enable millers to make prompt payments to growers during the next crushing season", the PSMA official added.
He said that the government should allow export of more quantity of sugar as the country has enough stocks, and there would be no shortage. The official said that the country would earn foreign exchange by exporting more sugar for easing its balance of payments position.
Sharing the details of sugar production in 2010-11, Deoomal Essarani, Chairman of Pakistan Sugar Mills Association (PSMA), Sindh Zone, said that 84 mills produced 4.1 million tons of sugar. Sindh produced 1.3 million tons, Punjab 2.5 million tons, KP 0.25 million tons of sugar. He said he believed that about 5 million tons of sugar would be produced in the season of 2013. He said that the government should devise a mechanism to allow mills to export surplus sugar enabling timely payment to growers. Sources said that Trading Corporation of Pakistan (TCP) has refused to procure more sugar offered by mills.
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