ECC allows export of 100,000 tonnes of sugar

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved the export of 100,000 metric tons (MT) of sugar provided the price in domestic market would not increase from Rs89-90 per kg till January 31, 2023.

The ECC also decided that no subsidy whatsoever would be provided by federal and provincial governments at all. If the domestic prices of sugar went up, then the export of sugar would be discontinued.

The details available with The News showed that the Sugar Advisory Committee reviewed the data provided by the provinces, PSMA and FBR on sugar stocks for 2021-22, sugarcane production estimates for 2022-23, sugar production estimates and consumption for the current fiscal year.

Earlier, the Prime Minister’s Office had given instructions to the Ministry of National Food Security & Research to hire a reputable audit firm but it could not be done. Finally, it was decided that reliance would be made on data/information provided by FBR duly signed by the FBR chairman.

The SAC recommended to the ECC export of sugar up to 100,000MT. Quota will be given to PSMA for further distribution to millers (only filers). The situation shall be reviewed fortnightly. The PSMA shall undertake that the price of sugar will not increase in the domestic market from Rs85-90/kg (ex-mill) till January 31, 2023. In case of an increase in domestic sugar price, SAB shall recommend to ECC discontinuation of exports on an immediate basis.

The PSMA and cane commissioners shall ensure timely payment to the growers.

The prime minister will be approached to review his earlier decision on the hiring of an independent audit firm by NFS&R for verification and authentication of sugar-reported stocks.

Keeping in view the recommendations of SAB, the ECC of the Cabinet may consider allowing the export of sugar up to 100,000MT, subject to certain conditions.

According to an official announcement made after the ECC meeting, Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the ECC of the Cabinet.

The ECC considered and approved a summary of the Ministry of National Food Security and Research on the export of sugar during FY 2022-23 and allowed the export of sugar up to 100,000 MT. It was further decided that the ECC shall review the situation on fortnightly basis. The ECC further directed and PSMA committed that the existing price of sugar will not increase in the domestic market at least till 31st January, 2023.

The ECC also approved the Technical Supplementary Grants, including Rs7 million in favour of the Ministry of Climate Change for the establishment of a state-of-the-art audio-visual room for holding online meetings and Rs743.57 million in favour of the Ministry of Housing and Works for execution of its development schemes.

The Ministry of Planning, Development & Special Initiatives conveyed the approval of the PM/Chairman NEC regarding the additional allocation of Rs3.743 billion under PSDP (2022-23) for execution of 21 development schemes of the Ministry of Housing and Works through Technical Supplementary Grant (TSG).

In the first phase, an amount of Rs3 billion have been matured for Technical Supplementary Grant (TSG) but an amount of Rs743.574 million, the remaining portion of scheme PSDP for Development package Shangla Road, water supply, etc., was pending for want of surrender of funds by respective ministries/divisions.

Now, the National Heritage & Cultural Division, Ministry of Energy (Power Division) and Ministry of Communications have surrendered the savings in favour of the Ministry of Housing & Works to obtain the said amount through TSG in the Budget Demand. The National Heritage and Culture Division surrendered Rs350 million, Power Division Rs10 million and Communication Division Rs383.574 million.