Govt to Export 2.5 Lac Ton Sugar Ahead of Crushing Season

Pakistan has approved the export of 250, 000 tons of sugar from socks at present available in the domestic market.

Key points

• Sugar Mills Claim Cash Shortage To Pay Farmers As New Crushing Season Nears.
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• The decision was taken by a committee headed by Deputy Prime Minister Ishaq Dar.
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• The sugar approved for export will be sourced from the market and will not come from the stock held by the Trading Corporation of Pakistan (TCP).

Notably, the decision was taken by a committee headed by Deputy Prime Minister Ishaq Dar. The proposal will now be placed before the Economic Coordination Committee (ECC) and the federal cabinet for final approval.

In practice, the sugar approved for export will be sourced from the market and will not come from the stock held by the Trading Corporation of Pakistan (TCP).

For context, the decision comes ahead of the new sugarcane crushing season. It is scheduled to commence on November 15. With a sizeable quantity of sugar leaving the domestic market before the new crop arrives, a potential supply gap and higher costs loom simultaneously.

Research demonstrates that every Rs. 1 growth in the rate of sugar can add around Rs. 5 billion to Rs. 6 billion to the value of sugar mills' stocks.

Pakistan saw a sharp growth in sugar costs after exports were allowed last year. Sugar was selling at around Rs. 140 per kg at the time, but rates afterwards climbed to regarding Rs. 220 per kg. Stay Connected with ProPakistani.

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For now, govt to Export 2.5 Lac Ton Sugar Ahead of Crushing Season remains the part of the story worth watching, and further updates are likely as more details are confirmed.