The government’s decision to export 108,000 metric tons of sugar from the stocks held by the Trading Corporation of Pakistan is a welcome step for the millers, not farmers. It can help reduce government-held stocks and may bring some relief to the market. The Economic Coordination Committee approved the export through international tenders under the rules of the Public Procurement Regulatory Authority.
The sugar is part of the remaining stock from around 300,000 metric tons imported last year. This is where the government needs to ask a basic question: why did Pakistan need to import sugar in the first place?
Exporting surplus sugar can be a sensible decision when domestic supplies are sufficient. However, importing sugar because local production is weak and then later exporting the surplus reflects a problem in policy and planning. Pakistan should aim to produce enough sugar for its own needs and create a stable surplus for export.
The real solution lies with farmers. The government should give stronger incentives to sugarcane growers so that they can increase production and improve the quality of their crop. Better seeds, affordable inputs, modern farming methods, water management and timely payments can make a major difference.
At the same time, policies should not simply provide more benefits to sugar mills. Farmers must receive a fair return for their crop. If the government wants Pakistan to become a regular sugar exporter, the incentives should begin at the farm level.
The sugar industry can contribute to the economy, but its growth should not come at the cost of farmers or consumers. The government must also ensure transparency in sugar exports and prevent artificial shortages that can push up domestic prices.
The ECC’s decision is therefore positive, but it should be part of a bigger policy. Sugar export is good when Pakistan has a genuine surplus. Sugar import should not become the easy answer to poor planning.
