ECC allows export of another 100,000 tonnes of sugar

ISLAMABAD: With the approval of Rs20 billion for Operation Azm-e-Istehkam, the Economic Coordination Committee of the Cabinet (ECC) Thursday approved the export of 0.1 million ton sugar under certain conditions.

Earlier, the PDM-led government under former minister for finance Ishaq Dar had permitted sugar export on the condition that if the retail price surged, the export could be reversed.

According to an official announcement on Thursday, Federal Minister for Finance Senator Muhammad Aurangzeb chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet. The ECC approved the summary of the Ministry of Industries and Production for export of further 0.1 million tons sugar on the following conditions.

a. In view of procedural delays encountered during export of sugar, the period allowed for export of sugar from the date of allocation of quota by respective Cane Commissioner shall be extended from forty-five (45) days to sixty (60) days;

b. Export proceeds shall be received in advance in case of Afghanistan only through banking channel; however, export proceeds in case of LC may be allowed within a period of 60 days of opening of LC for export of sugar to other destinations;

c. Benchmark for retail price of sugar may be delinked from the permission to export sugar as retail price is not directly under the control of sugar mills; and

d. Condition of revoking of export quota in case of non-payment of dues of growers from proceeds of export of sugar shall be applicable only to the non-compliant mills rather than PMSA as a whole.

Moreover, the ECC decided to monitor the market situation on a monthly basis and review its decision as per emerging needs. The council instructed the Sugar Advisory Board to develop a comprehensive sugar policy within two months to address the sector’s challenges and ensure sustainable growth.

The ECC also considered and approved a grant of Rs276.250 million in favor of the Ministry of Interior to HQ Frontier Corps KP(N) TSG for Project Implementation Letters (PILs), Rs1951.995 million on account of payment of security charges for Reko Diq Project to Frontier Corps Balochistan (South) and Rs20 billion as a special allocation for Operation Azm-e-Istehkam during CFY 2024-25.