Pakistan has approved the export of up to 250,000 tons of sugar, raising concerns over availability and price in the domestic market.
According to media reports, the decision was made by a committee led by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar. The proposal will now be submitted to the Economic Coordination Committee (ECC) and subsequently to the federal cabinet for formal approval.
Officials clarified that the sugar earmarked for export will be procured from the open market rather than being released from the stocks maintained by the Trading Corporation of Pakistan (TCP).
The move comes shortly before the start of the new sugarcane crushing season, which is scheduled to commence on November 15. Exporting a significant volume of sugar before fresh cane supplies enter the market could tighten domestic availability, potentially creating upward pressure on prices.
According to estimates, even a Re1 per kilogram increase in sugar prices can raise the value of mills’ inventories by approximately Rs5 billion to Rs6 billion.
Pakistan experienced a significant rise in sugar prices after exports were permitted last year. At that time, sugar was available at roughly Rs140 per kilogram, but its price subsequently increased to around Rs220 per kilogram.
