The government has approved an additional export quota of 500,000 tonnes of sugar for the mills across Pakistan. The Economic Coordination Committee (ECC) of the Federal Cabinet made the decision, which has now been ratified by the Federal Cabinet. The export quota allocation has been divided based on the quantity of sugarcane crushed by the mills.
Of the total 500,000 tonnes, 64% of the export quota has been allocated to sugar mills in Punjab, with 41 mills allowed to export 320,000 tonnes of sugar. Among them, Hamza Sugar Mills of Rahim Yar Khan will export 21,642 tonnes, while Makkah Sugar Mills is allotted 592 tonnes. Sindh’s sugar mills will export 150,000 tonnes, making up 30% of the total quota, and Khyber Pakhtunkhwa mills will export 30,000 tonnes, representing 6% of the allocation.
The decision comes with specific conditions. According to a circular issued by the Exchange Policy Department (EPD), authorized dealers are instructed to process export requests for the eligible mills upon receiving proof of quota allocation by the respective Provincial Cane Commissioner. The export must be shipped within 90 days of the quota allocation, and 100% advance payment is required for shipments to Afghanistan. For other destinations, exports must be backed by a Letter of Credit.
The move aims to enhance export revenues for the sugar industry, following the government’s strategy to open more international markets for local producers.
