ISLAMABAD: The federal cabinet approved the export of an additional 500,000 metric tons of sugar, with conditions applied to ensure price stability and domestic supply, ARY News reported citing sources.
The federal cabinet gave the approval through a circular. The retail price of sugar is fixed at Rs. 145.15 per kilogram. If prices exceed this benchmark, exports will be cancelled immediately, as per one of the conditions.
The sugar mill owners must begin production by November 21. The Sugar Advisory Board will regularly monitor sugar prices to prevent price hikes.
The cenrtre also directed the provincial governments to monitor sugar prices. It also asked the mills owners to ensure that the price of ex-mil sugar does not exceed Rs 140 per kilogram.
The State Bank of Pakistan will inform the Economic Coordination Committee about the status of sugar exports on a 15-day basis. It may be noted here that a total of 750,000 tons of sugar has been allowed to be exported since June 2024, the sources said.
Earlier, the federal government has given permission to export 250,000 metric tons of sugar the other mont h100,000 metric tons in September 150,000 tons in June, the sources added.
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Sources privy to the development revealed that the export will be halted immediately if domestic sugar prices exceed the set benchmark, ensuring stability in the local market.
The export quota will be distributed among provinces based on their sugar production, with over 64 percent allocated to Punjab, 6 percent to Sindh, and 30 percent to Khyber Pakhtunkhwa (KP).
The distribution process will be managed by provincial commissioners, and quotas will be allocated within seven days of notification.
The retail price of sugar for export is fixed at Rs 145.15 per kilogram, and mill owners must keep domestic prices below Rs 140 per kilogram with no subsidies will be provided for the export, and the State Bank of Pakistan (SBP) will report on export status every 15 days.
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