ECC bans sugar export as 94pc spike in cost makes masses bitter
Business
ECC bans sugar export as prices soar by 94pc
LAHORE (Dunya Investigation Cell) – In the previous fiscal year, 215,751 metric tons of sugar was exported which resulted in the profit of $100.04 million for the sugar exporters.
In the month July of the ongoing financial year, 5,542 tons of sugar worth $3.4 million was exported.
In December 2022, the government lifted the ban on the export of sugar that resulted in the export of 250,000 ton. However, due to the lifting of ban, the price of per kg of sugar increased from Rs90 to Rs175.
Pakistan Institution of Statistics provide yearly analyses in this regard. In 2019, 691,994 metric tons of sugar was exported which provided exporters benefit of $220.2 million – the same year saw the decline in the commodity for citizens that resulted in the imports of 7,852 metric tons of sugar.
In 2020, 181,447 metric tons of sugar was exported that provided $70 million to exporters – the same year also saw again the deficiency of the commodity that led to the imports of 7,609 metric tons of sugar with the government also imposing ban on the export of sugar.
In 2021, to control the shortage of sugar, 281,000 metric tons of sugar was imported that cost $102 million and in the year 2022, 312,477 metric tons of sugar that cost $190 million.
Read more: Sugar price shoots up to Rs160 per kg
In 2023, the national exchequer had to endure the burden of $5.6 million for the imports of 6,205 metric tons of sugar.
According to statistics, the exports of per metric ton of sugar were $625 in July of this year; $484 in 2023, $389 in 2020; and $322 in 2019.
As for imports the cost was $939 in July 2024; $909 in 2023; $613 in 2022; $457 in 2021; $502 in 2020; and $499 in 2019.
It is being feared that due to the rising price of sugar in the world market, more than 700,000 tons of sugar has been smuggled into Afghanistan.
In April 2023, the Punjab government decided to take action when it was revealed that 400,000 tons of sugar was smuggled to Afghanistan and people involved in sugar smuggling made a profit of Rs115 billion.
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In 2023, Punjab government has increased the official support price of sugarcane per 40kg by 58 percent while the Sindh government has increased the support price of sugarcane by 50 percent and hence the cost of 40kg sugarcane is Rs.450.
Thus, since the fiscal year 2022, the official price of sugarcane has increased by 88 percent in Punjab and by 80 percent in Sindh while the price of sugar has increased by 94 percent in the same period.
It should be noted that the ECC has also decided to ban the export of sugar to bring down the price of sugar.
