KARACHI: Pakistan Biscuit and Confectionery Manufacturers Association (PBCMA) has warned that allowing sugar exports would lead to higher prices on the domestic market, which would not only hurt this industry but also put more burden on the common man in Ramazan.

Sugar consumption during the month of fasting rises sharply as people use a lot of juices, beverages and sweets during iftar.

PBCMA Vice Chairman Raees Ahmed said that exports of the commodity were not viable at this time because prices were higher on the domestic market than the global market. This suggested that sugar producers wanted to make higher profits by raising prices at home, he claimed.

He said that at first stage sugar producers were seeking permission for export, but later they would be demanding a subsidy because of lower global prices.

Sugar was selling for Rs60 a kilogram on the domestic market compared to $489 a tonne (Rs50 per kg) on the international market, he said.

There are around 15 large biscuits and confectionery manufacturers in the organised sector and about 300 in the unorganised sector. Besides, thousands of small bakeries across the country directly cater to the needs of low-income groups. Beverages and soft-drink producers also need large amounts of sugar for their products. He added that in order to protect the sugar industry, the government has already imposed 20 per cent customs duty and 20pc regulatory duty.

Published in Dawn, March 15th, 2017