Government Defers Sugar Mills’ Request to Export Sugar

ISLAMABAD: The federal government has deferred the Pakistan Sugar Mills Association’s request to export sugar, citing concerns over domestic supply and potential price increases in the local market.

According to sources, a decision regarding the export of surplus sugar will be taken after the commencement of the next crushing season. The government has postponed the request amid fears that sugar exports could lead to shortages and higher prices for consumers.

The sugar industry has claimed that the country currently has a surplus of 1.3 million metric tons of sugar, which could generate approximately $500 million in foreign exchange if exported.

However, the government has decided that permission for sugar exports will only be considered after ensuring that domestic demand is fully met.

Sources said the government is keen to avoid a situation where sugar has to be imported at a later stage due to inadequate local stocks. Officials have also taken into account last year’s experience, when sugar prices surged to more than Rs180 per kilogram following exports.

The government is expected to review the country’s sugar stock position during the upcoming crushing season before making any final decision on export permissions.