Price declining trend in world market blocks export of 0.3 million tons of sugar
MOHAMMAD BILAL TAHIR
Sugar millers had sought permission from the government to export up to 500,000 tons of refined sugar because of expectations of a bumper crop in 2011-2012, authorities only granted a permission of exporting 0.3 million tons. It is note worthy to mention here that Pakistan had approved the export of sugar for the first time in nearly three years, spurred by surplus of more than 1 million tones of sweetener in 2011-2012.
Sources said that more 50,000 tons of sugar from allocated quota could not be exported due to decline in international rates.
“We had sought permission of exporting 500,000 tons sugar in December 2011 from government of Pakistan but it granted permission of exporting 10,0000 tons in May 2012 and 20,0000 in June 2012 when sugar of other countries also arrived at international markets”, sources in Pakistan Sugar Mills Association (PSMA) said.
He pointed out that prices of sugar at international market were decreased when sugar output of other countries including arrived at international market.
“When millers demanded of exporting sugar the prices of sugar were $610 per MT (metric ton) MT), but now after six months when government allowed to export sugar the prices are at international market are $530 per MT”, he informed, adding that government had made the decisions to export further 0.2 million tons of sugar when sugar of other countries like Brazil has arrived at international markets.
“If government allowed millers earlier to export said quantity of sugar, the country could have earned more foreign exchange as compared to persisting situation”, they added.
Industry sources said that most of sugar has been exported to countries like Dubai and Singapore.
Sources in the PSMA said the country still had a surplus stock of 500,000 tons of the commodity even after exporting 100,000 tons. Sugar production in current season stood at 4.75 million tons. Sindh has produced 1.3 million tons; Punjab produced 3.15 million tons while Khyber Pukhtoonkwa (KP) has produced 35,0000 tons of sugar.