ISLAMABAD: Federal Minister for Commerce, Jam Kamal Khan, embarked on a proactive initiative to tackle pressing issues and stimulate sustainable growth within the sugar and ethanol industries. While tackling the issue, the minister found himself being pulled in opposite directions over a sugar byproduct.
As per details, On Monday, significant meetings were held with representatives from the Sugar Mills Association and the Ethanol Manufacturer Association, at the Ministry of Commerce.
The primary objective of these gatherings was to establish a constructive dialogue aimed at identifying practical solutions to the challenges impeding the progress of these sectors.
During the deliberations, members of the Sugar Mills Association articulated their concerns regarding the anticipated surge in tariffs for Molasses exports. They emphasised that the export of molasses play a pivotal role in fortifying foreign reserves.
Molasses is the main byproduct of sugar mills and its quantity is almost proportional to the quantity of sugar produced. It is a useful product in developing animal feeds and alcohol production. These properties mean that molasses remains a key export of the sugar industry. According to the Sugar Mill Association of Pakistan, the amount of molasses used locally is close to 5% of the total domestic production of this byproduct. This means that the sugar millers export the remaining 95%.
This year, the sugar millers are concerned that if, like last year, the tariffs on molasses exports are raised to collect additional tax, their profit margins and competitiveness on a key cash-generating product will take a hit. That is the reason they stressed the imperative need for not only reducing the tariffs but also investing in infrastructure enhancements to augment terminal capacity. This will facilitate broader access to international markets, making molasses export much easier.
Now since ethanol, a form of alcohol, also uses molasses in its manufacturing process, representatives from the Ethanol Manufacturer Association, in their meetings with the commerce minister, demanded the opposite of what the sugar millers asked. Ethanol manufacturers underscored the significance of implementing sustainable long-term policy measures to safeguard the domestic ethanol industry, expressing apprehensions over the excessive Molasses exports. They urged authorities to exercise caution, and prioritise local production.
Additionally, the Chairman of the Ethanol Manufacturer Association advocated for the import of raw sugar to sustain domestic sugar manufacturing.
Responding to all these apprehensions, Minister Jam Kamal could only reaffirm the government’s unwavering commitment to mitigating challenges faced by both sectors. He pledged to expedite efforts in resolving pertinent issues, emphasising the pivotal role of industrial growth in bolstering the nation’s economic landscape and augmenting foreign reserves.
The meetings culminated with a shared commitment to collaborative endeavours aimed at surmounting obstacles and fostering an enabling environment conducive to the sustainable growth of the sugar and ethanol industries. Minister Jam Kamal reiterated his steadfast support for the prosperity and advancement of these critical sectors, highlighting their pivotal role in propelling economic progress and fortifying national resilience.
