The government is likely to enhance sugar export quantity from 0.25 million tons to 0.5 million tons without subsidy aimed at stabilising the market and ensuring payments to the growers, well informed sources in Commerce Ministry told Business Recorder.
However, the government would take firm undertaking from the sugar industry that prices in local market do not increase as a result of export approval.
Presently, price of sugar in the international market is around $550 per ton and it is the best time to export surplus commodity sans rebate. Sugarcane crop is bumper this year and production statistics have recently been shared with the Ministry of Industries and Production and show that surplus will be around 0.8 million tons.
The sources said on September 23, 2016, Economic Co-ordination Committee(ECC) of the Cabinet had been informed that sugar stocks would be surplus on arrival of the new crop, suggesting that there was great potential to export sugar after maintaining the strategic stocks. The committee argued that in case the sugar export is considered, it should not be more than 0.25 million tons in a single phase and after that export, Commerce Ministry should again approach the ECC to seek fresh approval for further export.
The sources said proposal for export of sugar had been initiated in the Ministry of Commerce in November 2016, however, Commerce Minister, Engineer Khurram Dastgir Khan kept the summary with him for weeks prior to sending Africa, Central Asia and Russia, the Americas, the Middle East and Asia-Pacific, it said.
The United Arab Emirates is China's second-largest trading partner in the Middle East, with commerce worth $60 billion in 2016.
British oil giant BP last year secured a 10 percent share in the same oil concession, while France's Total won a further 10 percent out of the total 40 percent earmarked for foreign companies. Inpex Corp of Japan secured five percent and South Korea's GS Energy three percent.
ADNOC is still looking for a partner for the remainder of the concession, the statement said.
The Emirati company produces 3.1 million barrels per day, it said.
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