Pakistan: Government to scrap sugar export permission if retail prices increase
Islamabad: The government warned that permission to export 0.150 million metric tonnes of sugar will be revoked if retail prices exceed the June 13 benchmark by more than Rs 2 per kilogram, reports Business Recorder. The Economic Coordination Committee rejected a condition for exporters to receive proceeds in advance or within 60 days. Despite surplus stocks, the Commerce Ministry has yet to issue formal export approval. Monitoring of prices and payments to farmers is mandatory.
Islamabad: The government has issued a stern warning that permission to export 0.150 million metric tonnes of sugar will be scrapped if retail prices increase beyond the benchmark set on June 13, 2024, plus Rs 2 per kilogram, reported Business Recorder.
According to media report, the Economic Coordination Committee (ECC) has not approved the condition of the industries ministry which made it mandatory for the exporter that export proceeds shall be received either in advance through banking channel or within a period of 60 days of opening of L/C for export of sugar.
The Commerce Ministry, which had previously refused to submit a summary on sugar export, has yet to issue a statutory regulatory order (SRO) to formally permit the export, sources added.
On June 13, 2024, the Industries and Production Division reported that following two meetings of the Sugar Advisory Board, a third meeting was held at the Ministry of Industries and Production (MoI&P) in Islamabad. The meeting presided over by Federal Minister for Industries and Production Rana Tanveer Hussain was briefed on data about sugar stocks for the crushing year 2023-24 from the provinces and the Federal Board of Revenue (FBR).
The stakeholders attending the meeting concluded that the carryover sugar stocks were 4.213 million metric tonnes as of June 5, 2024, and the quantity consumed during the last six months was 3.408 million MTs. Assuming the same rate for the next six months, it was projected that the country would be carrying a surplus stock of 0.805 million MTs of sugar by November 30, 2024.
After a threadbare discussion, the Sugar Advisory Board suggested the initial export of 0.150 million MTs of surplus sugar on the following conditions:
The PSMA must ensure that ex-mill prices will not be more than Rs 140 per kilogram and ex-mill as well as market prices will be monitored by the provincial authorities.
All export proceeds through sugar mills shall be used strictly and transparently for the clearance of payments due to farmers/growers. Provincial headquarters will undertake monitoring of the payment process at district and Tehsil levels and appropriately report the same to the Board.
In case of failure to adhere to these conditions, sugar exports shall be immediately stopped.
Source Link : https://www.chinimandi.com/pakistan-government-to-scrap-sugar-export-permission-if-retail-prices-increase/
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