ISLAMABAD: The federal government has given permission to export 5 lakh metric tons of sugar by manipulating the data, thereby raising fears of a sugar crisis in the country.
According to the details, a meeting of the Economic Coordination Committee (ECC) of the Cabinet was held on Friday under the chairmanship of Federal Minister for Finance Muhammad Aurangzeb. Ahad Khan Cheema, Minister of State for Finance Ali Pervez Malik, Governor State Bank of Pakistan, Chairman Securities and Exchange Commission of Pakistan and senior officers of various ministries and divisions participated.
The ECC considered the summary submitted by the Ministry of Industries and Production, which sought permission to export an additional 5 lakh metric tonnes of sugar in view of the abundant sugar reserves in the country, the meeting was told. According to the data provided by the provinces and FBR, the current reserves of sugar as of September 30, 2024 were 20.54 lakh metric tonnes, while the total consumption in the first 10 months of the current crushing year was 54.56 lakh metric tonnes. Consumption is estimated at 9 lakh metric tonnes.
Thus, after the 1.4 lakh metric tonnes of sugar that was already allowed to be exported, the country will have 10.14 lakh metric tonnes in stock. 5.64 lakh metric tons of additional sugar is available in the country even after being kept as , however the summary presented by the ministry regarding sugar consumption and reserves is in conflict with the summary presented in the last session. , in which the data is manipulated.
According to the summary presented on September 20, only 100,000 MT of sugar was allowed to be exported, ignoring which the ECC allowed the export of sugar on the basis of a new summary containing manipulations. , the ECC has decided to export sugar based on summaries submitted on September 18 and October 10, which are contradictory to each other, but both summaries are signed by the same federal secretary, Industries, Saif Anjum. A comparison of the summaries shows that the monthly consumption decreased by 20.2% to 114,000 MT, thus showing a surplus of 1.024 MT.
After removing this manipulation, the country would have only 336,000 metric tonnes of sugar in stock, barely enough to meet three weeks’ needs, leading to a sugar crisis in the country, leading to an increase in sugar prices. GA, According to a summary presented on September 18, the country’s sugar consumption during the first eight and a half months was 4.797 million metric tons, thus making the monthly consumption 564,353 metric tons.
FBR, Pakistan Sugar Mills Association and Provincial Cane Commissioners confirmed that consumption will remain the same during the next three-and-a-half months, with a total requirement of 1.974 million metric tonnes of sugar, the three main stakeholders. had announced that 564,000 metric tons of sugar would be consumed per month from August 16 to November 30, but surprisingly, in a summary presented on October 10, the figures were changed, leading to an additional 500,000 metric tons of sugar exports. Permission has been given.
The ECC has made some amendments to the conditions for exporting sugar, according to which the Pakistan Sugar Mills Association has to guarantee that its mills will start production for the new crop by November 21, 2024. And the mills violating this condition will have their export quota cancelled. Exporters will have to ensure that their export consignments are dispatched within 90 days of quota allotment. The Government reserves the right to cancel the export permit at any time keeping in view the stability and interest of the consumers.
The ECC further directed that the Cabinet Committee for Monitoring Sugar Exports, which has already been set up, will continuously monitor the demand, supply and price situation of sugar. It also approved compensation for the families of Chinese employees working at Qasim Electric Power Company who were killed in an attack yesterday. The families of both Chinese nationals will be paid $516,000 per citizen.
