Govt reviews sugar export request amid fears of price hike

Sugar mill owners in Pakistan have once again started preparations to export sugar and have requested the government to allow the export of 1 million tons.

According to sources, the Sugar Mills Association has provided the government with data regarding sugar production and available stock. The association claims that the country’s total sugar production is around 7.8 million tons, while an additional surplus of 1 million tons is available, which should be allowed for export.

The government has started reviewing the figures provided by the sugar mills and the Cane Commissioner. There are also concerns that mills may have included around 300,000 tons of imported sugar in their stock figures.

A final decision will be made after a detailed review by a committee headed by Finance Minister Ishaq Dar.

It is worth noting that last year sugar mills also claimed surplus stock and were allowed to export sugar. However, this led to a shortage in the local market, which caused a sharp increase in sugar prices. Later, the government had to import sugar again to meet local demand.

Meanwhile, the government has already sent a policy for deregulating the sugar sector. After deregulation, sugar mills will have more freedom to decide on exports.