PSMA demands of govt to allow ‘surplus’ sugar exports

ISLAMABAD-The Pakistan Sugar Mills Association (PSMA) has demanded of the government to allow the surplus sugar exports.
The Pakistan Sugar Mills Association (Punjab Zone) has written a letter to Dr Gohar Ejaz, Federal Minister for Industries and Production and Commerce, seeking permission for sugar exports. The government had imposed ban on sugar exports after commodity price increased in the country. 
In the letter, Chairman, Executive Committee and Members of PSMA-PZ take this opportunity to convey their appreciation of your incomparable efforts in revival of National Industrial landscape and formulation of business friendly policies by the present government. PSMA-PZ also lauds governmental actions taken to curb smuggling and hoarding of sugar, repeatedly requested by the PSMA in different high level meetings with government, which eventually brought down artificial price hike.
PSMA-PZ wishes to bring to your notice some challenges currently being faced by the sugar industry. As per latest data of FBR, 1.13MMT sugar stocks as on 31-10-2023 are still available with sugar mills which will last for more than two months considering our average offtake of last eleven months. New crushing season 2023-24 with this stocks position is considered unviable for the Industry due to multiple deterrents. Storage capacity of many sugar mills is already occupied due to existing stocks. Non-clearance of previous liability of banks due to undisposed sugar stocks with high interest rates has added to cash flow crunch of sugar mills notwithstanding that banks have squeezed credit lines for growers payments after court decision of JS Bank case. Prices of sugar are already much lower than its higher cost of production due to constant increases in major cost components like prices of sugarcane, interest rates and imported chemicals.
At this juncture allowing sugar exports of 500,000MT of surplus sugar will not only facilitate the sugar industry to cope up with the impending cash flow crunch but will ensure timely payments to sugarcane growers and will also earn nearly USD 400 million in much needed foreign exchange for national exchequer. While allowing export of sugar of 250,000MT in January this year it was promised with the sugar industry by the government that further tranches of sugar exports would be allowed subsequently. PSMA-PZ requests your good self to allocate time for an early meeting with a delegation of sugar industry and to take up the matter of surplus sugar exports with the federal government in view of the above narrated submissions.

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