LAHORE: In response to recent media reports on sugar price hikes beyond the Economic Coordination Committee’s (ECC) benchmark, the Pakistan Sugar Mills Association (Punjab Zone) (PSMA-PZ) has issued a clarification.Â
A spokesperson for PSMA stated that ex-mill sugar prices have remained within the government’s declared limit of Rs.140 per kg. This limit was established during the Cabinet Committee on Monitoring of Sugar Export meeting on August 1, 2024, and confirmed by the Ministry of Industries and Production after consultation with provincial governments.
The PSMA-PZ explained that all sugar mills have adhered to their commitment to the government before the final approval of the export of 0.15 million tons of sugar. The spokesman also noted that the recent budget increased the Withholding Income Tax U/S 236G of ITO 2001 by Rs.2.52 per kg, which should be factored into the ex-mill price benchmark.
Despite significant losses due to rising production costs and capital expenses from maintaining surplus stocks, the sugar industry is striving to meet the expectations of the government, local consumers, and sugarcane farmers. However, the industry is facing unmanageable recurring losses.
The PSMA reiterated its request for the government to permit the early export of 1.5 million metric tons of surplus sugar, as only 60 to 90 days remain before the next crushing season begins. Clearing these surplus stocks is crucial for providing storage space for the upcoming season’s production. Any delay could harm the industry and farmers, while also depriving the country of much-needed foreign exchange. A timely decision will help the sugar industry meet local demand and contribute to the country’s economy by exporting surplus sugar.
