Pakistan. Sugar export goes on despite price hike in local market

16.01.2017

The government has decided to continue with exporting sugar despite commodity price increased in the domestic market from last few days.

"An inter-ministerial committee other day has not decided to withdraw the decision of exporting sugar," said an official of the Ministry of Commerce. He further said that the government is keeping an eye on the sugar prices and would suspend the decision of exporting in case of further increase in its prices.

Sugar price recorded more than three percent increase and gone more than Rs66 per kg in the country since the government allowed its export. The official said that the inter-ministerial committee has decided to write a letter to Pakistan Sugar Mills Association (PSMA) against increase in commodity price. "There is no reason to enhance the sugar price as the country has sufficient stock," he noted.

He informed that the government had allowed exporting sugar to earn maximum foreign exchange reserves, as the commodity price is high in the international market.

Finance Minister Senator Ishaq Dar last week expressed concern about the slight increase in the prices of sugar and directed Ministry of Commerce to vigilantly monitor the prices and directed the ministry to take appropriate remedial action if there is any erratic movement in sugar price. Even, Commerce Minister Khurram Dastgir Khan also announced to withdraw sugar export permission if the commodity prices continuous increase.

However, inter-ministerial committee had not taken decision to stop sugar export. Earlier, the PSMA had assured the government for not increasing sugar prices after exporting the commodity. In December 2016, the Economic Coordination Committee (ECC) of the Cabinet decided to export 225,000 metric tons of sugar. Pakistan Sugar Mills Association (PSMA) had recommended the Ministry of Commerce to give permission to export 0.5 million tons of sugar by March next year. The PSMA has noted that sugar would be on surplus, almost 1.7 million tones on September next year, as the total quantity of the commodity will be 6.7 million tons against the consumption of almost 5 million tons.

The ECC also decided that the Ministry of Commerce should ensure that there are adequate checks and balances available to maintain the price stability in the domestic market at the current level. In case the domestic price stability is disturbed, the commerce ministry would bring summary to consider canceling the export permission to sugar exporters.


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