Sugar exports to Afghanistan have recommenced following a four-year pause, with more than 400 vehicles transporting sugar across the Torkham border within the past four days.
The resumption comes after Pakistan authorised the export of 150,000 tons of sugar, aiming to complete the shipments by August 15. The government has conditioned these exports on domestic price stability, stating that any Rs2 per kg increase in retail prices would halt exports.
Customs clearing agents reported that approximately 100 vehicles, each loaded with 33 tons of sugar, crossed into Afghanistan initially, with subsequent crossings in the following days. The previous ban on sugar exports was implemented to alleviate domestic shortages and stabilise prices.
Meanwhile, sugar millers have approached the government to authorise the export of an additional 850,000 metric tons of sugar in two phases, despite high domestic prices, a proposal that has drawn criticism.
This request was discussed at a recent Sugar Advisory Board meeting, where it was ultimately rejected, emphasising the need for price stability in the domestic market. The Minister for Industries also voiced opposition to further exports, citing the necessity to stabilise domestic prices.
Already, permission for the export of 150,000 metric tons, valued at approximately $90 million, has been granted with shipments commencing on July 16, 2024.
The sugar industry now seeks approval for a second phase of exports totalling 500,000 tons worth $300 million. In the third phase, they are looking for export of 350,000 tons worth $200 million. Industry representatives highlight that around 1.2 million tons of surplus sugar was available by mid-July, expected to increase to 1.5 million tons by November.
