Pakistan: Sugar Semi-annual
Sugar production is forecast at a record 6.5 million metric tons for 2017/18, up 6 percent from the initial forecast of 6 million tons due to an increase in area, better cane yields and improved sugar recovery rates. Record production is expected in the face of record stocks and is likely to present a challenge for the industry if it is unable to export its high-priced sugar stocks. While the government did not announce an export subsidy during 2016/17, exporters still managed to find a home for 400,000 metric tons of Pakistani sugar. The government has established an export quota for 2017/18, but with domestic prices well in excess of international prices, significant export volumes appear unlikely prior to the onset of the cane harvest unless an export subsidy is established.
