Permission to export sugar: sugar millers link payment to growers with government's nod

Sugar mill owners have linked payments to growers with government's nod to allow them to export 0.5 million tons of sugar, as the industry is anticipating a bumper production of nearly 5 million tons of sweetener this season, industry sources told Business Recorder on Friday.
Millers estimate about 0.5 million tons of white refined sugar as surplus, and fear that the government's restriction on export of the commodity would make it difficult for them to pay about Rs 250 billion, which they would have to pay to the growers for cane purchase. They said that the country's demand of sugar is 4.1 million to 4.3 million tons, and there would be a surplus in the current season.
Sugar production in 2010-11 was 4.1 million tons. Sindh produced 1.3 million tons, Punjab 2.5 million tons, and Khyber Pukhtoonkwa 0.25 million tons. PSMA sources said that about 0.8 million tons sugar would be surplus in the country after meeting the country's full next year's requirement and, with the decision of purchase of 0.3 million tons by the Economic Co-ordination Committee, 0.5 million tons of sugar would be available for export.
Export of surplus commodity should be allowed to save the industry as well as the farmers, said Sikandar Khan, a former chairman of Pakistan Sugar Mills Association (PSMA). He said that it would be very difficult for the sugar millers to make payment to cane growers within stipulated time frame, if export of sugar was not allowed.
He said that export of sugar would help earn precious foreign exchange for the country, when sugar prices in the international market are well above the price in Pakistan. He noted that thousands of tons of sugar was smuggled to Afghanistan every year due to which government has to brave losses to its national exchequer. He advised government to lift the ban on sugar export, keeping in view the country's economic interests. He said that sugar millers had also approached the federal government for lifting the ban on export of sugar and requested for allowing export of 0.4 million tonnes of sugar, but to no avail.