AVN 65.45 Increased By ▲ 0.50 (0.77%)
BAFL 30.65 Decreased By ▼ -0.86 (-2.73%)
BOP 4.83 Increased By ▲ 0.04 (0.84%)
CNERGY 3.72 Decreased By ▼ -0.12 (-3.13%)
DFML 14.26 Decreased By ▼ -0.15 (-1.04%)
DGKC 41.06 Decreased By ▼ -0.54 (-1.3%)
EPCL 46.56 Decreased By ▼ -0.14 (-0.3%)
FCCL 11.35 Increased By ▲ 0.06 (0.53%)
FFL 5.03 Decreased By ▼ -0.02 (-0.4%)
FLYNG 5.78 Decreased By ▼ -0.04 (-0.69%)
GGL 10.28 Decreased By ▼ -0.17 (-1.63%)
HUBC 67.03 Increased By ▲ 1.39 (2.12%)
HUMNL 5.68 Increased By ▲ 0.02 (0.35%)
KAPCO 27.85 Increased By ▲ 0.10 (0.36%)
KEL 2.19 Increased By ▲ 0.04 (1.86%)
LOTCHEM 24.83 Increased By ▲ 0.48 (1.97%)
MLCF 21.37 Decreased By ▼ -0.11 (-0.51%)
NETSOL 84.20 Decreased By ▼ -0.59 (-0.7%)
OGDC 85.94 Decreased By ▼ -1.31 (-1.5%)
PAEL 11.01 Increased By ▲ 0.03 (0.27%)
PIBTL 4.17 Decreased By ▼ -0.05 (-1.18%)
PPL 74.56 Decreased By ▼ -1.14 (-1.51%)
PRL 13.40 Decreased By ▼ -0.25 (-1.83%)
SILK 0.92 Increased By ▲ 0.03 (3.37%)
SNGP 40.44 Decreased By ▼ -0.89 (-2.15%)
TELE 5.86 Increased By ▲ 0.01 (0.17%)
TPLP 15.42 Decreased By ▼ -0.22 (-1.41%)
TRG 111.63 Decreased By ▼ -0.07 (-0.06%)
UNITY 13.76 Decreased By ▼ -0.22 (-1.57%)
WTL 1.14 Decreased By ▼ -0.02 (-1.72%)
BR100 4,037 Decreased By -26.9 (-0.66%)
BR30 14,412 Decreased By -56.6 (-0.39%)
KSE100 40,471 Decreased By -262.4 (-0.64%)
KSE30 15,163 Decreased By -67.2 (-0.44%)
Follow us

ISLAMABAD: Pakistan is facing a sugar shortage of 260,000 tons for the ongoing year, official data revealed. According to the data shared with the Ministry of National Food Security and Research and the Ministry of Industries and production, this year, Sindh province has estimated a reduction of 40 per cent in sugarcane production, which will create further problems.

The document further said that Pakistan despite no sugar export in the past two years imported a total 0.677 million tons of the commodity to meet the local requirements.

According to Tariq Bashir Cheema, the Federal Minister on National Food Security and Research right now the members of the Pakistan Sugar Mills Association (PSMA) are pressurising the government to let them export one million tons of sugar. While the government is reluctant in allowing sugar exports, saying the PSMA should provide verified sugar stocks data to get permission, which, the PSMA has so far refused.

The minister said that the PSMA claimed the country has 1.9 million tons of sugar stocks and the crushing season is to start which will bring fresh commodity in the market and the millers have no space to store the old stocks, so export will earn not only foreign exchange but also help free space in warehouses for fresh commodity.

Business Recorder has noted that sugar prices in the local market within the past three weeks have jumped up by Rs400 per 50kg bag from Rs4,150 per bag to Rs4,550 per bag, which according to traders if the government allowed PSMA to export the commodity will once again cross Rs5,000 mark.

According to official data, Pakistan from 2011 to 2020 exported sugar below the global market price which ranges from $384-$558 per ton and for which they even got subsidies from the government. But when the government allowed exports, within a few weeks a shortage of the commodity was created in the local market and the government was forced to allow import of sugar at higher price ranging from $473-$826 per ton, which caused huge financial losses to the national kitty, while the millers earned handsome profits by exporting and importing.

Sugar export: decision to be taken on Thursday

The official data shows that in 2011-12, the PSMA exported 144,706 tons of sugar worth $80.7 million at $558 per ton and imported 5,247 tons worth $4.33 million costing $826 per ton, reflecting a loss of $268 per ton or 48 per cent difference in import and export price. In 2012-13 a total 1.03 million tons of sugar worth $506 million was exported at $492 per ton, and imported 8,051 tons of sugar at $678 per ton costing $5.45 million or 38 per cent difference in export and import price.

Pakistan, in 2013-14, exported 0.735 million tons of sugar at $446 per ton, fetching $$327.5 million and imported 8,386 tons of commodity at $624 per ton with total import spending $.23 million or 40 per cent difference in export and import price.

The country, in 2014-15, exported 0.58 million tons of the commodity at $450 per ton, earning $261million and imported 13,742 tons of sugar at $582 per ton worth $7.99 million, or 29 per cent difference between export and import rates.

In 2015-16 Pakistan exported 0.273 million tons of sugar at $451 per ton worth $123.2 million and imported 9,466 tons at $473 per ton worth $4.47 million or five per cent difference in export and import price.

Pakistan, in 2016-17, exported 0.398 million tons of commodity at $510 per ton worth $203 million and imported 9,559 tons at $593 per ton worth $5.66 million. The export was 16 per cent cheaper than the imports.

In 2017-18, the country exported 1.57 million tons of sugar at $332 per ton worth $$522 million and imported 7,748 tons at 561 per ton worth $7.75 million; the exports were 69 per cent cheaper than the imports.

In 2018-19, a total of 0.619 million tons of sugar was exported at $340 per ton bringing $210 million in foreign exchange and sugar import stood at 7,519 tons at $492 per ton costing $3.7 million or exports were 45 per cent cheaper than imports.

Pakistan, in 2019-20, exported a total of 72,611 tons of sugar at $384 per ton worth $27.8 million and imported 36,451 tons at $450 per ton, costing $16.4 million while exports were 17 per cent cheaper than imports.

According to official data, during 2020-21, Pakistan did not export sugar, while sugar imports stood at 0.415 million tons at $734 per ton, costing $304 million to the national kitty, and in 2021-22, the country imported a total of 0.262 tons of the commodity at $484 per ton costing $126.85 million to the national kitty.

Copyright Business Recorder, 2022


Comments are closed.

A Khan Nov 24, 2022 06:41am
Completely misleading article. Pakistan obviously has a surplus in sugar this year as domestic sugar price is 30-40% cheaper than international prices. If export is not allowed then farmers will not receive a fair price for their crop and that will be devastating for the Agri sector. Furthermore it is deceitful to state that Pakistan imported sugar in the same year we exported sugar without explaining what type.of sugar was imported. Why would anyone import sugar from abroad when domestic sugar is available at a cheaper price. Business Recorder reporters should know economics and markets better than others and they know that no private business would import something from abroad which could be bought at a cheaper price domestically.
thumb_up Recommended (0)
Muhammad Zubair Nov 24, 2022 03:53pm
Completely misleading and beyond facts. The writer should have to done proper homework before publish article on this sensitive issue. First the imported sugar which most of years mentioned is specialized pharma grade industrial one. Second how come price will not go up if the basic raw material in case of sugar industry is sugarcane up by Rs. 225 to Rs 300 per 40 kgs.
thumb_up Recommended (0)
Abdullah Nov 25, 2022 08:13am
We need to stop eating sugar.Its bad for health.Reduce the intake and see how hour life improves .
thumb_up Recommended (0)

Country facing sugar shortage

Dar hits out at Imran Khan’s ‘irresponsible tweet’ about current govt

Islamabad court sends Sheikh Rashid on 14-day judicial remand

Imran says PTI to fill jails on his call to protest against govt's vengeful actions

Imran Khan not brave enough to voluntarily accept arrest: Marriyum Aurangzeb

Analyst fears further rupee decline in coming days

Wikipedia asks Pakistan to restore access to its service

Sri Lanka completing pre-requisites for IMF aid: President

Pakistan to appeal to Taliban leader after terrorism surges

US allows seized Russian money to go to Ukraine aid: report

Ukraine, Russia swap prisoners; bodies of British volunteers returned