Sugar millers have stated that they had $1 billion in surplus stocks in the country, which can be sold in the international market to generate foreign exchange as well as revenue for the government.
An official of the Pakistan Sugar Mills Association (PSMA) stated in a statement that the sugar industry has been reminding the government of the necessity for surplus sugar export for the past year.
However, he stated that even after the goods were checked through the Federal Board of Revenue’s (FBR) track and trace system and verified by other government offices, the federal government refused to grant export permission.
He was confident that sugar mills would again manufacture surplus sweetener costing $1 billion in the coming crushing season. Prices of sugar are continuously decreasing in the international market. If no attention is paid to this matter, then the rates will fall to levels where the government will have no option but to give subsidies on sugar export, the official added.
Moreover, the official cautioned that if sugar supplies were not approved, the mills would be unable to begin the new crushing season.
PSMA stated last month that sufficient inventories of sugar are lying in their godowns and that if the coming crushing season begins without the export of surplus stock, the mills will be unable to keep the fresh stock of sugar.
The remark was made by the association’s general body meeting during a recent discussion with the high-ups of the Punjab Agriculture and Food Departments over the commencement of the crushing season in 2022-23.
Participants in the meeting included representatives from the government, growers, and the sugar business. The group was informed about the sugar recovery, which was estimated to be between 4 and 6.5 percent in October.
In addition, a PSMA spokeswoman claimed that PSMA members raised their concerns prior to the meeting. All members agreed that the sugar mills have plenty of extra sugar in their go-downs.