Lahore: According to the media report, the market insiders suggested the government to have special funds to maintain strategic reserves of one million tonnes of sugar in FY2023 as the sugarcane output is likely to dwindle next season.
The federal government, instead of allowing the export of sugar should buy this 1.0 million tonnes to maintain strategic reserves. The area under cane cultivation has been decreased as well as there is a shortage of water which might reduce sugar output for the forthcoming season.
The introduction of a track and trace system has helped in accounting for 1.2-1.4 million sugar tonnes that were out of the book so far. The sugar manufacturers do not have higher sugar stocks to meet the domestic requirement of the commodity. Taking note of this, the government should not allow sugar export. The market insiders have stated that the area under cane cultivation has decreased by 13% and the output by 18%.
