Sugar board recommends conditional export of 500,000 tonnes

ISLAMABAD: The Sugar Advisory Board (SAB) has recommended the conditional export of 500,000 tons of sugar, requiring sugar mills to begin the cane crushing season before Nov 21 and clear all outstanding payments to farmers.

The SAB, a federal tripartite body, which includes representatives from federal and provincial governments as well as sugar industry, was convened Tuesday under the chairmanship of Federal Minister for Industries and Production Rana Tanveer Hussain. The board met to review sugar industry’s status and consider requests from millers.

In addition to approving conditional export, the board reviewed sugarcane crop estimates, the sugar stock for 2023-24 crushing season, ex-mill and retail prices and sugar export proceeds.

The SAB’s recommendation will be forwarded to the Economic Coordination Committee (ECC) of the Cabinet for final approval.

“The millers must start sugarcane crushing season before Nov 21,” said Rana Tanveer, stressing the urgency. He also directed all dues owed to sugarcane farmers be cleared by the mill owners.

The board further stipulated sugar mills must complete export process within three months. This condition, officials said, aligns with government’s efforts to stabilise sugar industry.

During the meeting, provincial cane commissioners reported 1.192 million hectares of land are currently under sugarcane cultivation for the 2024-25 season, a 1.05pc increase from previous season’s 1.180 million hectares.

The commissioners also noted as of Sept 30, 2024, sugar stock of 826,000 metric tons was available. The government had earlier allowed export of 150,000 metric tons of sugar in recent months.

Officials highlighted a reduction in retail sugar prices, which have dropped by Rs6 per kilogram over the past four months — from Rs143.15 on June 13, 2024, to Rs137.51 on Oct. 3, 2024.

The ex-mill price as of Oct. 7, 2024, was recorded at Rs124.2 per kilogram. Additionally, State Bank of Pakistan officials reported banks had realised $81.82 million from export of 118,312 metric tons of sugar as of Oct. 4, 2024.