Wheat export and storage: Adviser directed to take stakeholders into confidence

The Economic Coordination Committee (ECC) of the Cabinet has directed Prime Minister''s Adviser on Commerce, Textile, Industry and Production, Abdul Razak Dawood to formulate wheat export and storage policy in consultation with the stakeholders, official sources told Business Recorder.
This decision was taken by the ECC in its meeting held on October 16, with Finance Minister Asad Umar in the chair. Prime Minister''s Adviser suggested to the committee that surplus wheat in the country should be exported to earn foreign exchange and save on storage charges of the wheat stock. He further stated that in that connection he would hold a meeting with all stakeholders and apprise the ECC of viable recommendations.
The ECC directed the Adviser to have the all-in-cost of holding surplus stocks of wheat calculated with a view to determining whether there was a case for export subsidies. Abdul Razak Dawood also informed the ECC that due to the drop in international sugar prices, the sugar industry was demanding that the ECC''s decision of October 2, 2018 may be modified and they may be allowed to start crushing of sugarcane at full capacity by November 30, 2018 instead of November 15.
The ECC observed that the decision regarding start of crushing of sugarcane by November 15, 2018 was taken after a thorough discussion and consensus of the participants of the meeting with a view to ensure a fair transactional relationship between the sugar industry and growers. It was further noted that the October 2, 2018 decision was also notified by the Cabinet. The ECC decided that this proposal should be placed before the federal cabinet. However, federal cabinet, in its meeting held last week, rejected the proposal of the sugar industry.
Sugar industry expressed disappointment at the decision of the federal cabinet which is forcing the mills to start before November 15, which is two weeks before the legally binding date of November 30 in order to be eligible for sugar export; the industry further stated that this makes no sense as "we have surplus sugar sitting in the mills and government wants mills to start to add to this surplus".