Pakistan’s Sugar Export Of 1.5m Tonnes Got Completed In One Year
Pakistan’s Sugar Export Of 1.5m Tonnes Got Completed In One Year: Pakistan’s sugar exports hit a new peak of 1.359 million tonnes attracting $474m in July-May 2017-18 as compared to 302,268 tonnes earning $158m in the same period last fiscal.
The average per tonne price dropped to $348 in 11 months of 2017-18 against $524 per tonne average price earned in the same period last fiscal. Sugar exports were made to African countries, the Middle East, Nepal, Myanmar, etc.
He said the country made highest ever sugar production of 7.5m tonnes last season as against requirement of 5-6m tonnes, leaving extra stocks of 1.5m tonnes.
He said that when Pakistan Sugar Mills Association (PSMA) sought no subsidy and only permission to export surplus sugar so that growers could be paid, the government refused.
At that time sugar price in world market was $550 per tonne. When rates fell to $350 per tonne, the government allowed sugar export with subsidy of Rs20 per kg, with Rs10.70 per kg federal share and Rs9.30 per kg by Sindh government.
Pakistan’s sugar production fell by 7pc in July-April 2017-18 to 6.464m tonnes from 6.969m tonnes in same period 2016-17.
Chairman Karachi Wholesalers Grocers Association (KWGA), Anis Majeed said export was made possible due to attractive subsidy to offset the impact of falling sugar price in world markets and clear huge carryover stocks of last year. Besides, rupee devaluation against the dollar also encouraged exports.
He said sugar exports were necessary as the country had huge carryover stocks of last year’s crop. Besides, sugar price remain in the range of Rs.50-55 per kg in the last one year which did not prove a heavy burden on the consumers.
According to the Economic Survey 2017-18, sugarcane is high value cash crop of Pakistan and is significantly important for sugar and sugar-related industries in the national economy.
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