Pakistan Sugar Mills, which received government approval in June 2024 to export 150,000 tons of sugar, have not yet achieved this target. The 45-day deadline for fulfilling the export quota has passed without the mills meeting the goal.
Despite failing to export the full 150,000 tons, the mills are now requesting additional export quotas, according to a senior Ministry of Industries and Production official. Imran Ahmad, Secretary General of the Pakistan Sugar Mills Association (PSMA), mentioned that 35,000 tons of sugar are currently stuck at the Pak-Afghan border due to the expired deadline, resulting in storage costs. The mills have asked for more time to complete the exports.
The mills have repeatedly sought extra export quotas during Sugar Advisory Board (SBA) meetings. Last month, they were granted an additional 40,000 tons for export to Tajikistan, and in late August, the government approved another 100,000 tons. However, the Economic Coordination Committee (ECC) of the Cabinet initially lifted the requirement to cap local sugar prices at Rs140 per kilogram. The federal cabinet later overturned this decision, directing the ECC to reinstate the price cap. The ECC then referred the issue back to the SBA, which recommended maintaining the price cap on sugar exports.
Under federal Cabinet guidelines, sugar exporters must ensure local prices do not exceed Rs140 per kilogram, with a permissible increase to Rs145 per kilogram. Exports must stop if prices exceed this limit.
During the SBA meeting, sugar millers objected to the price cap and requested permission for increased exports. The meeting also reviewed the availability and pricing of sugar stocks, noting a Rs2 decrease in the average retail price. Federal Minister for Industries and Production Rana Tanveer Hussain stated that the market conditions suggest stable prices and a surplus of sugar stocks, and any rise in prices would be unacceptable.
Additionally, Hussain confirmed that there are no plans to shut down the Utility Stores Corporation (USC) and that various restructuring options are being explored. A new subsidy mechanism is being developed to improve transparency, with assurances that all decisions will be made in consultation with employees and stakeholders, protecting their interests.
