Wednesday, July 24 2024

Sugar export to Afghanistan resumes after four years
Sugar export to Afghanistan has resumed after a four-year suspension, with over 400 vehicles crossing the Torkham border in the last four days. According to sources, Pakistan recently allowed the export of 150,000 tons of sugar to Afghanistan, setting the August 15 deadline for the completion of the shipment process. Customs clearing agents at Torkham told Dawn that around 100 vehicles, each carrying 33 tons of sugar, crossed into Afghanistan four days ago and more thereafter. The government slapped the sugar export ban four years ago to address shortages and control prices in the country, according to officials. The administration of the Khyber tribal district, along with the police, has established a number of checkposts along the Peshawar-Torkham Highway to prevent sugar smuggling. It seized a large quantity of sugar from warehouses in Torkham and Landi Kotal and arrested many sugar smugglers after the ban was imposed.
Related news categories: business economic-indicators misc sugar

Monday, July 22 2024

Continuing sugar blues
Pakistan is the 7th largest producer of sweetener in the world, and sugarcane is the country’s second most important cash crop after cotton. The country produced 7.8 million tonnes of sugar in the crop year 2021-22 (the highest-ever volume). Its per hectare cane yield is 46 tonnes, around 14 tonnes less than the world average of 60 tonnes. Sugar output in the country declined year-on-year from 2016-17 to 2019-20. However, the next two consecutive seasons saw an increase in the output because of a somewhat better yield and a significant increase in the crop acreage, coupled with a surge in the minimum sales price and a more empowered cane commissioner in Punjab, ensuring full and timely payments to the growers. This led to sugar production of 2m tonnes more than expected in 2021-22.
Related news categories: business economic-indicators misc sugar

Thursday, July 18 2024

Cabinet places sugar price cap
The cabinet has placed a price cap on sugar to regulate its export in a bid to avoid manipulation of domestic prices. Sources informed The Express Tribune that the cabinet, chaired by Prime Minister Shehbaz Sharif, decided that if the retail price of sugar exceeds the benchmark ex-mill price or the retail price plus Rs2, further exports will be immediately stopped. In the past, there have been several sugar export scandals where the price of sugar in the domestic market shot up soon after the government allowed exports. In some cases, the export of sugar did not materialize, but the price in the local market skyrocketed, enabling the sugar millers to pocket billions from consumers. This is the reason the current government allowed the export of the commodity but placed a cap on domestic prices.
Related news categories: business economic-indicators misc sugar

Wednesday, July 03 2024

SBP directs banks to facilitate sugar export
The State Bank of Pakistan (SBP) has advised all banks to facilitate the export of sugar but to ensure proceeds are received before shipments are exported. In a circular on Tuesday, the central bank said the Economic Coordination Committee (ECC) of the Cabinet has allowed the export of 150,000 tonnes of sugar with specific terms and conditions. The decision was taken just two days before the 2024-25 federal budget announcement. The decision to export sugar has political implications, leading to higher domestic market prices. In FY23, sugar export was permitted, resulting in an 80pc surge in domestic prices. The Pakistan Sugar Mills Association, with a deep presence in the power corridor at both the federal and provincial levels, has managed to pressure the government into allowing the sweetener export.
Related news categories: business economic-indicators misc sugar