ISLAMABAD: Pakistan sugar industry is eyeing earning an estimated profit of Rs35 billion by exporting one million tons of refined sugar, calculation based on present global and local prices revealed.
At present sugar prices in the global market are hovering between $530-534 per ton which in terms of Pakistani rupees is about Rs120,000 per ton or Rs120 per kg while the ex-mill price of sugar in the local market is about Rs85 per kg.
The sugar industry first asked the government to allow export of 1.5 million tons of sugar and later revised it to one million tons. Considering the difference between local and global prices, the millers are all set to earn an estimated profit of Rs35 billion by selling one million tons of sugar at the above rates.
The government and the representatives of the Pakistan Sugar Mills Association (PSMA), Tuesday, failed to reach a decision on the export of refined sugar.
According to sources privy to developments, the Sugar Advisory Board (SAB) meeting, which was held here under the chairmanship of Federal Minister Tariq Bashir Cheema to discuss and review the sugar stock position and the start of sugarcane crushing season across the country, decided to hold another meeting on December 5, 2022, to further discuss the matters.
Dar willing to allow sugar export?
“The SAB decided to hold another meeting on the sugar stocks availability situation in the country and discuss the possibility of the export on next Monday,” the official who attended the meeting told Business Recorder.
The official said that the sugar availability-related data shared by the PSMA and Federal Board of Revenue (FBR) in the meeting was matched, following which, the meeting decided to forward the decisions of the SAB findings to the Ministry of Finance which will review the findings.
Cheema who is also the chairman SAB has set the condition for the PSMA members to prove that sugar was available in excessive quantity in Pakistan and export will not create a shortage in the local market and prices will not go up in the local market.
The Finance Ministry after reviewing the recommendations of the SAB will forward a summary to the Economic Coordination Committee (ECC) which finally will be taken to the cabinet for approval.
Copyright Business Recorder, 2022