The Pakistani businessmen have so far exported four million tonnes of sugar against its target of 650,000 set by the Economic Coordination Committee (EEC) but the exporters from Khayber Pakhtunkhwa are still waiting for their government’s decision.
According to the market players, the dealers of Sindh and Punjab exported sugar to Afghanistan, Dubai and other neighbouring countries.
Despite the export decision of the ECC on December 24, 2014, the sugar mills owners of Khyber Pakhtunkhwa are still looking toward the KPK government as it had refused to transport or export sugar from the province. The KP government has asked the ECC to allow subsidies up to 50 percent on the sugar export. Most of the sugar mills owners stopped the payments of thousands of cane farmers.
The sources in the sugar industry said around three to four million tonnes surplus sugar was laying in the stores of the sugar mills in Sindh and Punjab.
Pakistan Businessmen and Intellectuals Forum (PBIF) President Mian Zahid Hussain said: “The government of Khyber Pakhtunkhwa has refused to accept the ECC sugar export decision and now its decision became a threat for the farmers and their investments in the sugar sector.”
Keeping in view the surplus sugar production, the ECC also allowed paying Rs 10 per kg subsidies to enable exporters to compete with the international market prices. However, the exporters of all the four provinces were demanding 50 percent subsidy from the federal government, but the dealers of Sindh and Punjab exported above 400,000 tones of sugar till April 30, 2015.
He said sugar mills in KP had over 10,000 permanent employees while 25,000 workers and billions of rupees had been invested in this sector which would be in jeopardize if the cane millers bankrupted as they had already exhausted loan facility from banks which was 80 percent of the total production.
The sugar exporter said the move of the KP government would result in wastage of surplus sugar which was a perishable item and closure of mills which will have an impact on revenue collection and market jobs.