PAKISTAN: Sugar mills say exports won’t impact industrial consumers
Published: 03/20/2017, 11:48:33 AM
In response to a recent statement by the Pakistan Biscuits and Confectionery Manufacturers Association (PBCMA) about sugar exports, a spokesman for the Pakistan Sugar Mills Association (PSMA) said on Thursday the industry is only seeking to export surplus sugar after accounting for the local requirement for both industrial and domestic consumption, according to Pakistan's Dawn newspaper.
"Since the quantity of sugar is in surplus, it cannot be sold in Pakistan over and above the need of the consumers. The industry cannot make payments to sugar cane farmers without the disposal of surplus stocks," the PSMA spokesman said.
The spokesman said manufacturers of confectionery, biscuits and beverages never reduced their prices for consumers. "In fact, they want to secure their raw material at rates where the industry cannot break even to pay to the farmers," the PSMA statement said, adding that the apprehensions expressed by the PBCMA are ill-founded.
The spokesman further said that 80% cost of producing sugar consists of the sugar cane component, which is paid to farmers. Besides, the Federal Board of Revenue (FBR) has fixed the assessable value of sugar at INR60 (US$0.57) per kilogram.