LAHORE: The federal Ministry of Industries and Production has reportedly allowed the export of sugar that was imported at a higher cost, raising concerns over potential losses to the national exchequer and the impact on Pakistan’s sugar industry.
According to sources within the ministry, the government has not yet approved the export of around 250,000 tonnes of locally produced sugar, which is available at a comparatively lower cost. Instead, authorities have permitted the export of only 100,000 tonnes.
Sugar industry stakeholders have expressed disappointment over the decision, questioning why expensive imported sugar is being allowed for export while a larger quantity of cheaper locally produced stocks remains in the country.
The situation could also create difficulties for sugar mills in purchasing the upcoming sugarcane crop. Mill owners have reportedly warned the Ministry of Industries and Production that financial pressure caused by existing stocks could affect their ability to procure sugarcane from farmers.
Industry sources fear that if mills are unable to sell their existing sugar stocks effectively, they could face cash-flow problems, potentially affecting payments and procurement from growers.
The development has renewed questions over the government’s sugar export and import policy, particularly its approach to balancing domestic supply, sugar prices, farmers’ interests and the financial position of sugar mills.
Stakeholders are calling for a clearer and more consistent policy to prevent disruptions across the sugar supply chain and minimise potential losses to the national economy.
