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KARACHI: Pakistan’s sugar exports hit a new peak of 1.359 million tonnes fetching $474m in July-May 2017-18 as compared to 302,268 tonnes earning $158m in the same period last fiscal.
The average per tonne price dropped to $348 in 11 months of 2017-18 against $524 per tonne average price earned in the same period last fiscal.
Sugar exports were made to African countries, the Middle East, Nepal, Myanmar, etc.
A sugar miller said, “Export of 1.5m tonnes of sugar have been completed in the current fiscal year.”
He said the country made highest ever sugar production of 7.5m tonnes last season as against requirement of 5-6m tonnes, leaving extra stocks of 1.5m tonnes.
He said that when Pakistan Sugar Mills Association (PSMA) sought no subsidy and only permission to export surplus sugar so that growers could be paid, the government refused.
At that time sugar price in world market was $550 per tonne. When rates fell to $350 per tonne, the government allowed sugar export with subsidy of Rs20 per kg, with Rs10.70 per kg federal share and Rs9.30 per kg by Sindh government.
Pakistan’s sugar production fell by 7pc in July-April 2017-18 to 6.464m tonnes from 6.969m tonnes in same period 2016-17.
Chairman Karachi Wholesalers Grocers Association (KWGA), Anis Majeed said export was made possible due to attractive subsidy to offset the impact of falling sugar price in world markets and clear huge carryover stocks of last year. Besides, rupee devaluation against the dollar also encouraged exports.
He said sugar exports were necessary as the country had huge carryover stocks of last year’s crop. Besides, sugar price remain in the range of Rs 50-55 per kg in the last one year which did not prove a heavy burden on the consumers.
According to the Economic Survey 2017-18, sugarcane is high value cash crop of Pakistan and is significantly important for sugar and sugar-related industries in the national economy. It provides raw material for industry which is the country’s second largest agro-industry sector after textiles. The year 2017-18, witnessed another record season for the sugarcane crop production of 81.102m tonnes showing an increase of 7.4pc over the last year’s production of 75.482m tonnes which comfortably exceeded the target of 70.3m tonnes by a considerable margin of 15.4pc. Its production accounts 3.6pc in agriculture’s value addition and 0.7pc in overall GDP.
Sugarcane crop was cultivated on an area of 1,313 thousands hectares compared to last year’s area of 1,218 thousands hectares, up by 7.8pc.
Sugarcane production was up due to increase in sowing area. Good economic returns encouraged growers to bring more area under cultivation and comparatively timely payments from sugar mills last year, the survey said.
In 2012-13, the exports of 1.064 million tonnes of sugar fetched $530 million while in 2014-15 the country earned $322m with shipments of 708,356 tonnes of the commodity.
Published in Dawn, June 28th, 2018
