ECC allows additional export of 0.5m MT of surplus sugar

October 11, 2024 (MLN): After thorough discussions on the proposal and considering recommendations from relevant stakeholders and ministries, the Economic Coordination Committee (ECC) on Friday approved the additional export of 0.5 million metric tons of surplus sugar.

The approval was granted based on the same terms and conditions as outlined in the ECC's decision on September 20, 2024, with the following modifications and additions: 

•    This permission shall be subject to the provision of an undertaking by PSMA that their mills will commence production by November 21, 2024 for the next crop year and export quota of any non-compliant mill will be revoked;
•    Exporters shall ensure that the consignments are shipped within ninety (90) days of allocation of quota by the respective Cane Commissioners; and
•    This permission may be revoked by SAB at any time in the interest of stability of the domestic market and maintenance of retail price.

The Ministry of Industries and Production submitted the agenda of exporting 0.5m MT of sugar in view of the availability of sufficient surplus stocks even after catering for the proposed and ongoing exports, the requirement for remaining two months of the ongoing crushing year, as well as maintenance of strategic reserves. 

The meeting was told that as per data provided by Provinces and FBR, the existing stock of sugar stood at 2.054m MT as on September 30, 2024, while total consumption during the last ten months of current crushing year 2023-24 stayed at 5.456m MT.

It was further submitted that in the next 2 months, the expected offtake was likely to stand at around 0.9m MT (based on FBR reported offtake for September i.e 0.45m MT).

Therefore, after taking into account the 0.140m MT quantity yet to be exported as per earlier ECC decisions, the remaining expected stocks would be 1.014m MT as on November 30, 2024.

Similarly, after earmarking one month’s off-take i.e 0.45m MT as strategic reserve, a surplus of 0.564 Million MT would still remain available.

The ECC further directed that the Cabinet Committee on Monitoring Sugar Exports, already constituted vide Cabinet Division’s Notification dated 25th & 26th June, 2024 and September 13, 2024, would continue to regularly monitor and update the Cabinet on demand, supply and price situation of sugar in the country, including in the case of export of 0.500 MMT of sugar as well.

The ECC also discussed and approved a summary submitted by the Ministry of Industries and Production seeking a compensation package for the deceased Chinese employees of Port Qasim Electric Power Company (Private) Limited.

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