The government has approved additional export of sugar despite rising domestic prices of the commodity. Ever since the government has allowed sugar exports, market forces have been driving up the domestic prices of sugar.
The Economic Coordination Committee (ECC) of the cabinet set the export quantity quota at 225,000 tons, which would be shipped by the end of March 2017 provided that domestic prices would be maintained at the level of December 15, 2016, at Rs62.61 per kg. If prices rose, an inter-ministerial committee, constituted by the prime minister, would recommend to the ECC to halt further exports.
In its earlier meetings held on January 11, 2017, and February 9, 2017, the committee while reviewing the prices of the commodity noticed a price fluctuation of only 2-3% which did not require any intervention.
Later in a meeting summoned on March 28, the ECC was informed that sugar prices had risen following the export decision in December. Moreover, sugar exporters had also missed the deadline of March-end and had only successfully shipped 37pc of the approved quota. However, the ECC allowed further exports of 200,000 tons.
The Pakistan Sugar Mills Association pleaded for an extension from March 31 to May 31, 2017, due to the closure of Pakistan-Afghan border.
