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Pakistan approves 1 mil mt of sugar exports for the 2018-2019 season

Singapore — Pakistan's Economic Coordination Committee (ECC) on Wednesday approved 1 million mt of sugar exports for the 2018-19 (November-December) season, without any subsidies for freight or other financial support to the mills.

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Pakistan had exported 2 million mt of low quality white sugar over the 2017-18 season, with an export subsidy of $90-$102/mt, according to S&P Global Platts Analytics estimates.

Pakistan's opening stock for the 2018-19 season is expected to be 1.962 million mt, as per ECC data. The Committee estimates a surplus of 1.096 million mt of sugar after accounting for 866,000 mt as strategic reserve and urged the exporters to export the excess sugar as soon as the new season begins on November 1, 2018.

Most of the 1 million mt sugar exports will be to neighboring Afghanistan, where Pakistani exports will be competitive without any export subsidy, as per EEC estimates.

Afghanistan imported 739,000 mt of sugar during the 2017-18 season, with almost all the imports from Pakistan, Platts Analytics data showed.

Pakistan is expected to produce 8.19 million mt of sugar next season with a domestic consumption of 5.57 million mt, according to Platts Analytics data.

-- Srijan Kanoi,

-- Edited by Elizabeth Thang,