LAHORE - The millers will provide around 10,000 tons of sugar to Punajb government to be sold at Ramazan Sasta Bazars at Rs48 per kg, which is below ex-mill rate by Rs2-3 per kg.

Food Department officials confirmed that Provincial Food Department and Pakistan Sugar Mills Association, Punjab Zone have reached an agreement under which all Punjab mills will ensure supply of a total of 10,000 tons of sugar to Ramazan Bazaars across the province at subsidized rate of Rs48 per kg and every mill will contribute as per its production capacity.

They said that presently sugar is available at Rs56 per kg in retail market while ex-mill rate of the commodity is in the range of Rs49 to Rs50. Millers are of the view that they are forced to sell white sweetener below the cost at Rs49-50 per kg while their cost is not less than Rs55 per kg due to additional stock, as government allows a limited quantity of sugar export.

PSMA Punjab zone chairman Riaz Qadeer But while talking to The Nation demanded the government to announce sugar policy before start of crushing season.

He urged the government to prepare a complete and permanent mechanism for sugar export by fixing a limit.

The PSMA Punjab chairman expressed the hope that the new government will announce a complete and permanent mechanism for sugar export by fixing a limit.

“We hope after assuming charge the newly-elected government will make sincere efforts to resolve economic challenges faced by the country, bring economic reforms, resolve energy crisis and maintain law and order,” he said.

He expressed his hope that being a businessman and a matured politician Nawaz Sharif and his team would take immediate and proactive measures to usher country’s economy on track of development by finding permanent solutions to the core issues like energy, unemployment, inflation and poverty alleviation.

He said that the long-term policies and permanent mechanism for sugar export will allow the millers to enhance their expertise and endeavour for foreign market, besides producing surplus sugar to earn precious foreign exchange,” Butt stated.

As exporters are not aware of world market norms and clientage chain they have to take more time to seek information for marketing of their products. He blamed the government for inconsistent policies, which confused the millers as well as the exporters to decide its production target and export strategies.

“Whenever the sugar production surpasses a particular limit, necessary for local needs, the sugar mills should export surplus stock without waiting for permission of government,” PSMA Punjab chairman observed.  He said that Pakistan has so far exported around 800,000 tons of sugar while a total of 1.2 million tons of sugar is expected to be exported by the end of August.

He opposed the support price of sugarcane as it is against free market economy, and it is implemented nowhere in the world.

PSMA Punjab chairman said exporting sugar would help not only off-loading the surplus sugar but also help earn precious foreign exchange for the country.