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Condition for sugar export

PSMA ready to guarantee no shortage

JAVED MEHMOOD

ISLAMABAD: Sugar industry has recently informed the government that it is ready even for conditional export of sugar from the country, it was learnt.

Explaining the condition, sources said: "We have assured the government that the industry will be responsible in case there is any shortage of the commodity as a result of its export in 1999-2000 and the PSMA will arrange the import of the commodity well before the occurrence of shortage."

Sources further said: "The mills, which export sugar this year would be asked to import the commodity if there is any possibility of its shortage in the wake of its export."

Sources claimed that the Ministry of Food and Agriculture was in support of sugar export, but the Ministry of Commerce and other departments were opposing it on two accounts: first the government would have to give rebate and, second, they fear it would result in shortage of the commodity.

Pakistan Sugar Mills Association (PSMA) has made it clear to the government that the association would keep vigilance on stocks and pre-empt shortage.

However, as far as rebate was concerned it was the responsibility of the government to compensate sugar exporters, like other exporters, to off-load surplus in the international market to earn foreign exchange, sources said.

"Initially, we have demanded permission for the export of 100,000 tonnes of sugar out of a surplus of 250,000 tonnes, but the government has not given any response, neither positive nor negative," sources in PSMA said.

Latest data shows that the sugar industry has produced 1,298,347.40 tonnes of sugar till January 15, 2000, as against 1,292,917.45 tonnes in the same period last year, showing 5,430 tonnes increase in the production. The industry has sold out 565,737 tonnes sugar in the domestic markets and still has the stocks of 732,669.8 tonnes.

"There is decline in the area of sugarcane, but the percentage of recovery was better than last year, following which the production of sugar has increased," sources said.

They expected that the total production of sugar would be around 3.1 million tonnes and by adding carry-over around 250,000 could easily be available for export.