The government is considering enhancing the sugar export quantity from 0.25 million tons to 0.5 million tons without subsidy. The initiative is aimed at stabilising the market and ensuring payments to the growers, reported a national daily.
However, the government will ensure that the measure will not affect the prices of sugar 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 likely to be bumper this year and production statistics have revealed an expected surplus of around 0.8 million tons.
The sources said on September 23, 2016, Economic Coordination 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.
