ECC calls tenders for sugar export of 108,000 tonnes

The Economic Coordination Committee of the Cabinet stopped short of approving sugar exports on Wednesday, opting instead to invite international tenders for 108,000 tonnes, according to Dawn. The stock, held by the Trading Corporation of Pakistan, is the leftover from last year's imports of 300,000 tonnes. A formal export decision will depend on the prices bid in the tenders and will rest with the federal cabinet, an official told the newspaper.

Finance Minister Muhammad Aurangzeb chaired the meeting and was reluctant to take an outright decision, citing repeated export and import cycles that had cost consumers and created political costs. Officials said a tender needs at least 30 days, which would place the actual export decision close to the next crushing season. The Steering Committee had earlier permitted 500,000 tonnes of imports after local prices climbed following an export approval.

The Pakistan Sugar Mills Association reported stocks above three million tonnes as of July 31 and demanded exports of at least 600,000 tonnes, while the ECC did not discuss exports above 500,000 tonnes. Dawn reported that the government suspects exports combined with thin domestic stocks would send the wrong signal and lift domestic prices, while the crushing season is normally due to begin by the end of September.