Negotiations between govt, sugar mills remain inconclusive

ISLAMABAD: The second round of talks between the federal government and the owners of the sugar mills remained inconclusive as no decision was taken yet regarding the sugar export.

Federal Minister for National Food Security & Research Chaudhary Tariq Bashir Cheema said in a statement that the government has not yet granted permission for the sugar export. The minister said that the sugar mills were given formula and the matter will be discussed later.

Cheema said that the Punjab government had earlier notified about the low stocks of sugar and recommended to not grant permission for the export. He added that the provincial government took 180 degrees of U-turn on its stance today and informed the federal government that sufficient stocks of sugar are available.

READ: PAKISTAN SUGAR MILLS ASSOCIATION DEMANDS TO UNBAN SUGAR EXPORT

On the other hand, Commerce Minister Naveed Qamar said that the position on sugar stocks is the main issue and it is decided to conduct a third-party audit of the sugar stocks before making the final decision regarding the exports.

Pakistan Sugar Mills Association (PSMA) Chairman Zaka Ashraf said that the sugar mills have not yet observed a strike. He added that sugar mills in Khyber Pakhtunkhwa (KP), Sindh and Punjab are waiting for the next orders of the federal government regarding the exports.

Ashraf said that sugar mills are facing difficulties in making payments worth billions to the banks. He added that the current price of sugar is Rs85 per kilogram in local market while the manufacturing cost is Rs115 per kilogram.

The PSMA chairman said that the sugar industry is likely to face Rs100 million on a daily basis and Rs4-5 billion in one season.