Pakistan: Sugar Semi-annual
Sugar production is forecast at a record 5.7 million metric tons for 2016/17, up nine percent from a year ago. Sugar has emerged as a favored crop among farmers who value the government established procurement price for sugarcane in the face of lower prices for other crops. Pakistan has announced sugar export quotas and subsidies for each of the past two marketing years. It is too early to tell if a subsidy will be announced for this year, but record sugar production is expected to lead to large sugar stocks. For now,exports are forecast at zero given the price disparity between the domestic and international markets.That estimate will likely change if a subsidy is announced. Pakistan’s domestic sugar market is shielded by a 40 percent import tariff.
