Pakistan’s sugar production seen higher in 2016/17 marketing year

Pakistan is expected to produce 5.4 million metric tons of sugar in the 2016/17 marketing year, up 5.5 percent from the revised 2015/16 estimate, the United States Department of Agriculture (USDA) said in a report.

It said Pakistan exported 275,000 metric tons of sugar during the first three months of 2016 with the help of an export subsidy of $124 per metric ton.

Exports were well below the 500,000 metric ton quota that was established, the report said, adding that it was not clear if the subsidy will be extended.

“With the help of a 40 percent tariff, domestic prices are high and Pakistan’s sugar imports are minimal; unsubsidised exports to markets other than Afghanistan are improbable given current domestic price levels.”

According to the USDA, lower prices for rice and cotton have encouraged some farmers to shift to sugarcane where there is a guaranteed minimum farm price.


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