Government Defers Sugar Export Proposal Amid Fears of Local Shortage

Pakistan has postponed a proposal to export one million tons of sugar due to concerns over a possible domestic shortage amid the current regional situation.

According to sources in the Ministry of Industries and Production, a committee headed by Deputy Prime Minister Ishaq Dar deferred the summary seeking approval for sugar exports after a request from sugar mill owners.

Officials said the decision was taken after consultations with stakeholders and fears that exports could lead to shortages in the local market.

According to data from the Federal Board of Revenue, the current sugar mill intake suggests a risk of supply pressures over the next three months.

The committee also observed that the issue of sugar management falls under the jurisdiction of the Ministry of National Food Security and Research rather than the Ministry of Industries and Production.

The Pakistan Sugar Mills Association informed the government that total sugar production in the country currently stands at 7.8 million tons.

However, officials from the FBR and the Cane Commissioner’s office warned that allowing exports could trigger shortages and price hikes in the domestic market. The government also suspects that sugar mills may have included 300,000 tons of imported sugar in their stock figures.

Sources added that sugar mills had similarly declared surplus stocks last year to secure export permission, a move that allegedly contributed to shortages in the local market afterward.