Trade policy suggests organic brown sugar export

LAHORE: Export of organic brown sugar is proposed in the forthcoming Trade Policy 2011/12 as the Ministry of Industries has also supported the proposal being a high demand of this kind of sweetener, which will earn good amount of foreign currency for the national exchequer, according to official document.

According to approved draft of the Trade Policy by the Prime Minister, a copy of which is available with The News, revealed that permission to export organic brown sugar was proposed.

It said that export of all sorts of sugar has been banned in Pakistan. There is a demand for export of high value organic brown sugar. It is typically less processed and often comes in the form of raw sugar. It cannot be added with refined sugar. Its export will not in any way affect the local market, it said.

The Ministry of Industries supported the proposal, but to the extent of two percent of annual sugar production. Thus, it is proposed to allow export of organic brown sugar to encourage its production.

Pakistan Sugar Mills Association Punjab Zone Chairman Riaz Qadeer Butt talking to The News said that bumper sugarcane crop is expected in the country next year.

He said permission to export organic brown sugar will encourage the industry to produce high-end item.

Sugar production in the country during last year stood at 4.8 million tons and if consider it as a benchmark than around 98,000 tons organic brown sugar can be exported, he said.

“This will not affect the local refined sugar production, while only three sugar mills are, at present, producing and marketing organic brown sugar in the country,” he said.

If organic brown sugar export would be allowed than it would help Pakistan enter in the international market, he said, adding that globally organic items were sold at very high and attractive rates so it would be a new avenue for the Pakistani product.

Three sugar mills marketing organic brown sugar locally are producing not more than 10,000 tons at a cost almost 25-30 percent higher than refined sugar, he said.

“As the consumers of this type of product are high-end users and lives in posh localities of Pakistan, it could not affect the general public, at a large scale,” he added.

source: thenews