The Inter-Ministerial Committee (IMC) of Government of Pakistan, on 20th June decided to recommend exports of 0.6 million tonnes of sugar to the Economic Coordination Committee (ECC) of the Cabinet.
The committee, led by its chairman Minister for Commerce Khurram Dastgir Khan, said the fresh quantity of sugar export will be in addition to the 0.425m tonnes already allowed subject to the condition of price stability in the domestic market is maintained.
The IMC was tasked by the ECC of the cabinet to monitor the supply, price and export situation of sugar.
Sugar price in the country has declined for the first time in the month of Ramazan, contrary to the trend during the previous years. In 2016, the sugar prices reached up to Rs70 but in this Ramazan the prices are stable at Rs56.
The committee was briefed that the sugar price in the domestic market according to the Sensitive Price Index for the week ending June 15 was Rs56.30 per kg which was 11.1pc lower than the level of December 15, 2016 when the export of sugar was allowed by the ECC.
The committee also observed that out of the total quantity of 0.425m tonnes allowed for export by the ECC during the current crop year, a total of 0.391m tonnes sugar quota has, so far, been allocated by State Bank of Pakistan and around 0.348m tonnes has been exported.
The economic coordination committee of the cabinet (ECC) on 29th march allowed sugar mills to export 200,000 tonnes of sugar by 31 May.
In December 2016, the ECC had allowed 225,000 tonnes of sugar export till 31 March, 2017 with a condition that the inter-ministerial committee would recommend to the ECC stoppage of further export in case of sugar price hike in the domestic market. Subsequently, the Pakistan Sugar Mills Association, representing 90 sugar mills across the country, ran an advertisement campaign, requesting the government to increase export quota and timeline given the surplus inventory. The association urged the government to revise the annual sugar export quota to one million tonnes.
Pakistan produces around six million tonnes of sugar and consumes only around 4.5 million tonnes a year.