Sugar Advisory Board proposes export of additional 500,000 tons of sugar

The Sugar Advisory Board (SAB) has put forward a recommendation for the government to permit the export of an additional 0.5 million tons of sugar. This proposal is set to be reviewed by the Economic Coordination Committee (ECC) for formal approval.

As per media reports, in a recent meeting, Minister for Industries and Production Rana Tanveer Hussain announced that the sugarcane crushing season is expected to commence before November 21, with all sugar mills mandated to settle any outstanding payments to growers.

This recommendation follows the ECC’s earlier approval for the export of 0.1 million tons of sugar. 

During a previous meeting on September 2, 2024, stakeholders including the Federal Board of Revenue, Pakistan Sugar Mills Association, and provincial cane commissioners reviewed the sugar stock levels and consumption patterns. 

It was reported that as of August 15, 2024, there were 2.773 million tons of sugar in stock, with consumption during the last eight and a half months of the 2023-24 crushing season totaling 4.797 million tons.

Projections suggest that sugar consumption over the next one and a half months will mirror the previous months’ pattern, estimated at 1.974 million tons. 

Considering the quantities earmarked for export, including 0.055 million tons already planned and an additional 0.040 million tons potentially heading to Tajikistan, the surplus sugar expected to be carried over to the next year would be approximately 0.704 million tons.

The Punjab cane commissioner noted that the province’s sugar stock as of August 31, 2024, stood at 1.570 million tons, with consumption in August showing a decrease from the previous month. 

The total sugar required up to November 30, 2024, including for domestic consumption and exports, is projected at 1.125 million tons. After setting aside a strategic reserve of 0.375 million tons for one month, the surplus of 0.072 million tons would adequately cover Punjab’s expected export quota of 0.1 million tons.

Additionally, the SAB reviewed the latest sugar prices, observing fluctuations over recent months. Retail prices, which had briefly exceeded the ECC’s set benchmark of Rs145.15 per kg, decreased to below this threshold by late August and September. Ex-mill prices also remained significantly below the benchmark, underscoring a potential easing in the domestic sugar price landscape.

The ECC’s forthcoming decision on the SAB’s export proposal will take into consideration these factors, balancing the need to support domestic sugar producers with ensuring adequate supply and stable prices for local consumers.