Pakistan has approved the export of 250,000 tons of sugar from stocks currently available in the domestic market. This move could put pressure on local sugar prices.
The decision was taken by a committee headed by Deputy Prime Minister Ishaq Dar. The proposal will now be placed before the Economic Coordination Committee (ECC) and the federal cabinet for final approval.
The sugar approved for export will be sourced from the market and will not come from the stock held by the Trading Corporation of Pakistan (TCP).
The decision comes ahead of the new sugarcane crushing season, which is scheduled to begin on November 15. With a large quantity of sugar leaving the domestic market before the new crop arrives, a potential supply gap and higher prices loom simultaneously.
Research shows that every Rs. 1 increase in the price of sugar can add around Rs. 5 billion to Rs. 6 billion to the value of sugar mills’ stocks.
Pakistan saw a sharp increase in sugar prices after exports were allowed last year. Sugar was selling at around Rs. 140 per kg at the time, but prices later climbed to about Rs. 220 per kg.
The post Govt to Export 2.5 Lac Ton Sugar Ahead of Crushing Season appeared first on ProPakistani.
