Pakistan Sugar Mills Association (PSMA) has demanded of the government to allow export of 500,000 tonnes of sugar before commencement of the next season as the country has surplus stock of the commodity.
The demand has been made in a letter written to Prime Minister Raja Pervaiz Ashraf by PSMA Chairman Javed Kayani, in which the government has been asked to allow export of 500,000 tonnes of sugar before commencement of the next season, which according to the association would help the sugar industry make timely payments to sugarcane growers during the crop cycle 2012-2013.
According to the letter, Iran wants to purchase 100,000 tonnes of raw sugar, the permission for which may also be granted as it can only be produced during the crushing season. It also suggested the government to give prior direction to Trading Corporation of Pakistan (TCP) to keep 500,000 to 600,000 tonnes of sugar as strategic reserves to meet the requirements of Utility Stores Corporation (USC).
The letter further says that PSMA envisages a production of about five million tonnes of sugar, which is likely to surpass all previous production figures. With an expected carry over of 400,000 tonnes and meeting the domestic requirement of approximately 4.2 millions tonnes, there would still be an excess of 1.2 million tonnes of sugar, the disposal of which is mandatory.