PSMA Rejects Claims Of Surge In Sugar Prices Due To Exports.

1. PSMA Rejects Claims Of Surge In Sugar Prices Due To Exports. Located in South Asia, Pakistan is the ninth-largest sugar-producing nation in the world. Favorable weather conditions and increased acreage help the farmers of the nation harvest bulk sugar every year. However, despite this, the country fails to rank among The Top 10 Sugar Exporters of the world. The Pakistan Sugar Mills Association (PSMA) is the representative organization of all sugar mills in Pakistan and the body voices their views/opinions on their behalf. The PSMA raises formal proposals to the government for sugar exports, gives public statements, and is always in talks and this time as well, the body has come into picture for rejecting media claims of surging sugar prices due to exports of the sweetener. PSMA’s Statements Rejecting the price surge news that appeared in a section of the media, the PSMA said that it has been requesting the Pakistan government to allow the exports of sugar for long. However, the Pakistan government delayed its decision in this regard. The green signal came from the government in the month of December, 2022. If the Pakistan government have had allowed the same, little earlier, this could have acted as an impetus to the farmers to plant more sugarcane or improve their yield. Criticizing the government, the PSMA also cited that since the Pakistan government did not allow the exports of sugar at a time when global sugar prices were high, smugglers mafia earned huge foreign exchange by smuggling the commodity via porous borders to Afghanistan.

2. Concluding its statements, the PSMA said that it is one of the oldest entities of Pakistan and helps the government generate huge sums of revenue every year and hence surging sugar prices which is due to surge in sugar production cost in Pakistan should not be attributed to sugar exports to tarnish its image. Rising Sugar Production Cost In Pakistan The production cost of sugar has been on the rise in Pakistan. In the last crushing season, the Pakistan government increased the minimum support price (MSP) by 33% and this resulted in jacking up the production cost to Rs 130 per kg. Also, the markup rates of banks have doubled. From 12 % earlier, the mark-up rate has gone up to 24% as of now and this has been a major reason for rise in sugar production cost as well. Subsequently, rise in minimum labor wages, rise in prices of different chemicals and spare parts of machines, and rise in prices of oil have together fueled the sugar production cost in Pakistan. The Bottom Line Allaying the allegations of rise in sugar prices due to sugar exports as put forth by a media report, the Pakistan Sugar Mills Association (PSMA) said that it is one of the oldest entities of Pakistan which helps the government to generate huge sums of revenue and hence surging sugar prices which is a result of a surge in sugar production cost in should not be attributed to sugar exports to tarnish its image. If you are a sugar exporter looking to export bulk sugar or are a sugar importer looking to import bulk sugar, then Tradologie.com is the platform for you. Tradologie has over 600,000 verified buyers and 70,000+ verified suppliers in its network and through the platform, you can connect and conduct bulk trade of food and agro-commodities with ease. To register as a seller, click here. To register as a buyer, click here. To stay updated with the recent happenings of the agro-trade industry, do follow Tradologie across all social media channels.