ISLAMABAD: Pakistan is set to benefit from rising global sugar prices by exporting surplus stock, potentially earning hundreds of millions of dollars in foreign exchange, officials said on Wednesday.
International sugar prices climbed to around $429 per tonne on March 25 amid escalating tensions involving Israel, US and Iran. Industry estimates suggest that if prices rise further by $100-200 per tonne, Pakistan could earn between $800 million and $900 million through exports.
Officials said the country is expected to have a surplus of around 1.1 million tonnes of sugar this season, as total production is projected to exceed 7.6 million tonnes by April 10, against an annual domestic requirement of about 6.5 million tonnes.
Chairing a meeting of the Sugar Advisory Board, Pakistan Sugar Mills Association (PSMA) Chairman Chaudhry Mohammad Zaka Ashraf noted that sugar production in Punjab alone has surpassed last year’s output by approximately 1.2 million tonnes — an all-time record. He said countries including Bangladesh and China have already expressed interest in importing sugar from Pakistan.
Federal Minister for National Food Security Rana Tanveer Hussain, who attended the meeting via video link, agreed to form a committee comprising public and private stakeholders to finalise recommendations on exporting more than one million tonnes of sugar.
The committee will include representatives from the ministries of production, finance, and national food security, Federal Board of Revenue (FBR), as well as PSMA and cane commissioners from Punjab, Sindh, Khyber-Pakhtunkhwa and Balochistan. It will submit its report to Prime Minister Shehbaz Sharif and the federal cabinet for final approval. The body is also expected to propose exporting surplus sugar to Gulf and Middle Eastern markets.
Zaka Ashraf warned that timely approval of exports would enable the sugar industry to clear billions of rupees in outstanding payments to sugarcane growers. He cautioned that any delay could create difficulties in clearing farmers’ dues.The meeting was attended by senior officials, industry representatives and members of the Sugar Advisory Board.
