ISLAMABAD – Pakistan’s sugarcane crushing season is likely to draw to a close with the production of 3.4 million tonnes of sugar and the country is not likely to face any sugar crisis as high prices have reduced consumption of sugar. According to an official source, mills have so far produced 3.2 million tons of sugar and they were likely to produce another 200,000 tons before the season comes to an end. The Trading Corporation of Pakistan (TCP) have stocks of 445,000 tons from the last year’s imports. Sugar mills have so far sold 1.1 million tonnes of sugar produced while they have stocks of 2.1 million tonnes.
He stated that stocks are sufficient to last till October 15 if calculated on the previous domestic consumption estimate of 350,000 tonnes per month. However he claimed that last year it was observed that the sugar consumption dropped to 270,000 tonnes per month due to high sugar prices and indicated this was the reason that the TCP had retained such a huge stock which was expected to be consumed before the commencement of the crushing season. He also informed that since domestic prices were likely to increase after the close of crushing season and imposition of sales tax on revised ex-factory price, the stocks would be sufficient to last till December this year, provided the government maintained stringent curbs on the smugglers.
