Pakistan: Deputy Prime Minister to be new Chairman of Sugar Monitoring Committee
The Pakistani government has replaced Dr. Musadik Malik with Senator Ishaq Dar as chairman of the Sugar Monitoring Committee to facilitate more flexible decision-making. In a recent Sugar Advisory Board (SAB) meeting, it was revealed that Pakistan has surplus sugar stocks and recommended exporting 0.500 million metric tons, provided sugar mills begin production by November 21, 2024. Strict conditions, such as price controls and timely farmer payments, were set for mills, and no subsidies will be offered. These measures were approved by the federal cabinet.
Islamabad: The government has replaced Petroleum Minister Dr Musadik Malik with Deputy Prime Minister and Foreign Minister Senator Ishaq Dar as the new chairman of the Sugar Monitoring Committee reportedly at his request so that more flexible decisions be taken, according to officials in the Ministry of Industries and Production, reported Business Recorder.
The sources say that in recent committee meetings, it is Dr. Malik who has been quite strict, and that’s the way through which concerns are relayed to senior government officials.
On October 11, 2024, the Industries and Production Division updated the Economic Coordination Committee (ECC) about a meeting of the Sugar Advisory Board (SAB), which took place on October 8, 2024. The meeting, led by the Federal Minister for Industries and Production, reviewed sugar stock data provided by Provincial Cane Commissioners, the Federal Board of Revenue (FBR), and the Pakistan Sugar Mills Association (PSMA) for the 2023-24 crushing season.
The meeting concluded that, as of September 30, 2024, there were 2.054 million metric tons (MT) of sugar available. In the previous ten months, a total of 5.456 million MT had been consumed, not including exports. The board also predicted that 0.900 million MT of sugar would be used over the next two months, based on the amount distributed in September, which was 0.450 million MT. After accounting for this expected consumption and the already-approved export of 0.140 million MT, the remaining stock would likely be 1.014 million MT by November 30, 2024. Setting aside 0.450 million MT for future needs, a surplus of 0.564 million MT would still be available.
The board recommended that if sugar mills start crushing by the third week of November, an additional 0.500 million MT of sugar could be exported. They advised that this export should be allowed under certain conditions.
The Industries and Production Division proposed that the ECC approve the export of 0.500 million MT of surplus sugar, with these conditions: sugar mills must start production by November 21, 2024, or lose their export quota; the price of sugar at the mills should not rise above Rs.140 per kilogram; retail prices will be closely monitored, and if they increase beyond a set limit, the export permits will be cancelled. Additionally, sugar mills must use the money from exports to pay farmers what they are owed, and any mill that fails to do so will have its export rights revoked.
Sugar export quotas will be distributed among the provinces according to their production levels, and provincial authorities will track sugar prices and farmer payments. Reports on these matters will be submitted weekly to the Sugar Advisory Board. The State Bank of Pakistan will also provide updates on sugar exports every two weeks. The board emphasized that no subsidies would be given to exporters.
The ECC also suggested that Senator Ishaq Dar be appointed as the new head of the Sugar Monitoring Committee, replacing Dr. Musadik Malik. The Industries and Production Division was directed to report on the timeline and steps for exporting sugar at the next ECC meeting.
The federal cabinet has approved these decisions based on a summary circulated among its members.
Source Link : https://www.chinimandi.com/pakistan-deputy-prime-minister-to-be-new-chairman-of-sugar-monitoring-committee/
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