ISLAMABAD: The Ministry of Commerce (MoC) has conveyed sugar export mechanism to the concerned ministries and provincial governments.
According to Office Memorandum (OM) of January 18, 2023, the MoC has noted that the Cabinet has ratified the decision of the Economic Coordination Committee (ECC) of the Cabinet taken on January 11, 2023 regarding export of sugar during the year 2022-23.
The ECC of the Cabinet has allowed export of 250,000 MT of sugar, inclusive of previously approved quantity of 100,000 MT, as per the following terms and conditions:
The maximum limit for realisation of export proceeds shall be within sixty days of opening of LC for export of sugar. Quota for export of sugar shall be distributed among provinces in the following manner: (i) 61 percent for Punjab on first come first serve basis; (ii) 32 percent Sindh through the Cane commissioner of the province; and (iii) 7 percent for KPK on first come first serve basis.
According to the Commerce Ministry, the State Bank of Pakistan shall update the ECC on export of sugar on fortnightly basis, whereas the Pakistan Sugar Mills Association (PSMA) shall undertake that the price of sugar will not increase in domestic market from Rs 85-90/kg (ex-mill) for 2021-22 stocks.
In case of increase in domestic sugar price, the SBP shall recommend to the ECC further discontinuation of exports on immediate basis.
No subsidy whatsoever shall be provided to the exporters by Federal/ Provincial governments.
The MoC has urged the PSMA and Cane commissioners to ensure approved MIPs and timely payment to sugarcane growers.
The Commerce Ministry has also requested all stakeholders to implement the decision of the ECC/Federal Cabinet in letter and spirit and to facilitate the export of sugar as per the directions of ECC/ Federal Cabinet.
Copyright Business Recorder, 2023
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