The government of Pakistan has refused Tajikistan’s request for a subsidy on sugar exports, despite approving the export of 40,000 metric tonnes (MT) of sugar to the country.Â
The Ministry of Foreign Affairs conveyed that during Prime Minister Shehbaz Sharif’s visit to Tajikistan, the Tajik prime minister requested a sugar purchase at discounted rates. Tajikistan also sought financial assistance for port usage fees. After reviewing surplus sugar stock availability, the Sugar Advisory Board confirmed sufficient stocks existed to meet the 40,000 MT export.
In a recent meeting of the Economic Coordination Committee (ECC), it was decided that no subsidies would be provided as part of this deal. The ECC also warned sugar millers that their export privileges could be revoked if they fail to pay dues to sugarcane growers.Â
Earlier, the government had allowed the export of 0.1 million tonnes of sugar but granted this relaxation despite millers not meeting retail price benchmarks or paying growers on time.
The Commerce Division informed the ECC that the Trading Corporation of Pakistan (TCP) would facilitate negotiations with Tajikistan, but the Ministry of Industries and Production, through the Pakistan Sugar Mills Association (PSMA), would lead the talks.Â
The ECC instructed that while the PSMA should offer preferential pricing to Tajikistan, no subsidy would be involved. It also clarified that the export would be through a land route, eliminating port charges.
The ECC approved the export deal with the provision that the Ministry of Industries and Production, via the PSMA, would lead the negotiations. The TCP would support the process and address any issues that arise during the discussions, while the government reiterated that no subsidies would be provided.Â
The ECC also reviewed the export of 0.1 million tonnes of sugar, with the Ministry of Industries and Production assuring that adequate stocks were available to proceed with the export until the new crushing season begins.
