Islamabad, October 11, 2024: In a meeting chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, the Economic Coordination Committee (ECC) of the Cabinet approved the export of an additional 0.5 million metric tonnes (MT) of surplus sugar. The decision follows a thorough review of existing sugar stocks, domestic consumption, and the anticipated production for the remainder of the crushing year.
The meeting was attended by key federal ministers, including Rana Tanveer Hussain, Minister for Industries and Production; Sardar Awais Ahmed Khan Leghari, Minister for Power; Mr. Ahad Khan Cheema, Minister for Economic Affairs; Mr. Ali Pervaiz Malik, Minister of State for Finance and Revenue; and senior officials from relevant ministries.
Surplus Sugar and Stock Review
According to data presented by the Ministry of Industries and Production, as of September 30, 2024, Pakistan had a surplus sugar stock of 2.054 million MT. The total sugar consumption during the first ten months of the 2023-24 crushing year was 5.456 million MT, while the estimated consumption for the next two months is projected at 0.900 million MT.
With earlier approved exports still underway, and after accounting for strategic reserves of 0.450 million MT, the ECC concluded that there would be a surplus of 0.564 million MT available by November 30, 2024. Based on these figures, the ECC gave the green light for the export of an additional 0.5 million MT of sugar, with specific terms and conditions.
Conditions for Export
Production Deadline: The Pakistan Sugar Mills Association (PSMA) must provide an undertaking that mills will commence production for the next crop year by November 21, 2024. If a mill fails to comply, its export quota will be revoked.
Export Timelines: Exporters must ensure that sugar consignments are shipped within 90 days of quota allocation by the respective Cane Commissioners.
Market Stability Clause: The permission for export can be revoked by the Sugar Advisory Board (SAB) at any time to maintain stability in the domestic market and retail sugar prices.
Ongoing Monitoring
The ECC directed that the Cabinet Committee on Monitoring Sugar Exports will continue to oversee and provide regular updates on sugar demand, supply, and price trends. This monitoring will include the progress of the newly approved 0.5 million MT sugar export.
Compensation for Deceased Chinese Workers
In addition to the sugar export decision, the ECC also approved a compensation package for the families of Chinese employees from Port Qasim Electric Power Company (Private) Limited who lost their lives while working on the project. The Ministry of Energy (Power Division) presented the compensation proposal, which was discussed and approved during the session.
This additional export of sugar comes as part of Pakistan’s efforts to maintain a balance between domestic supply and international trade while ensuring the local market remains stable.
