Pakistan Approves Additional 500,000 Metric Tons of Sugar Exports with Conditions

The federal cabinet of Pakistan has given the green light to export an additional 500,000 metric tons of sugar, with stringent conditions in place to ensure price stability and domestic supply. This move brings the total sugar export allowance to 750,000 tons since June 2024.

Conditions for Export

To prevent price hikes, the following conditions have been set:

• Retail Price Cap: The retail price of sugar is fixed at Rs. 145.15 per kilogram. Exports will be cancelled immediately if prices exceed this benchmark.
• Production Timeline: Sugar mill owners must begin production by November 21.
• Price Monitoring: The Sugar Advisory Board will regularly monitor sugar prices, and provincial governments will also keep a check on prices.
• Ex-Mill Price: Mill owners must keep the price of ex-mill sugar below Rs 140 per kilogram.

Export Quota Distribution

The export quota will be distributed among provinces based on their sugar production:

• Punjab: 64%
• Sindh: 6%
• Khyber Pakhtunkhwa (KP): 30%

Reporting and Oversight

The State Bank of Pakistan will inform the Economic Coordination Committee about the status of sugar exports every 15 days.

Previous Export Approvals

Earlier, the federal government approved the export of:

• 250,000 metric tons of sugar last month
• 100,000 metric tons in September
• 150,000 tons in June

This decision aims to balance domestic supply and export demands while maintaining price stability in the local market.

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