20000321

Molasses export

earnings to

double this year

RECORDER REPORT

KARACHI: Export earning from molasses will double this year, compared with last year, due to tremendous increase in the prices of the commodity in the international market. EU is the main buyer of Pakistani molasses.

According to molasses traders, export will be 25 percent less this year in quantity than last year, but due to a considerable rise in prices in the world market, the export earning will be doubled. Traders attributed the increase in the prices of molasses in the European market to the low beet crop and breaking of a cartel of buyers, which has benefited the suppliers.

They said that Pakistan exported 1.8 million tonnes molasses last year, but the quantum of export may be lower this year due to the fall in sugar cane production.

It may be pointed out that the ministry of commerce had imposed quota on export of molasses last year. The export ceiling of 1.6 million tonnes created procedural problems for the exporters who have to obtain NOC from Pakistan Sugar Mills Association (PSMA) for every shipment. This not only delays shipment but also affects the quality of the by-product.

The exporters have urged the minister of commerce to lift the quota to facilitate the export. They maintained that in the presence of restrictions on export quantity, the country would not be able to take full advantage of the rise in prices in the international market.