The government is unlikely to extend deadline for sugar export to be expired on July 15, 2015 as commodity's prices have stabilised in the country with the intervention of government, sources close to Secretary Commerce told Business Recorder.
Giving the background, sources said, the ECC on December 24, 2015 had allowed export of 650,000 tons sugar by May 2015 but the export target could not be achieved because of lower international prices and some procedural delays.
Commerce Ministry, in its proposal had stated that due to lengthy procedural requirement for export, contracts only for 323,466 MT could be registered till March 27 2015. The Ministry had also pleaded it would not be possible to export the remaining quantity by May 15, 2015. Accordingly, the ECC allowed extension in the export period till July 15, 2015.
Insiders claim that PSMA has not imported entire quantity of 650,000 tons so far as quotas of about 90,000 tons remained unutilised.
Pakistan Sugar Mills Association (PSMA) used Finance Minister Ishaq Dar and Chief Minister Punjab Mian Shahbaz Sharif time and again to get maximum incentives through the Economic Co-ordination Committee. "The main purpose of export was disposal of surplus sugar, stabilisation of prices and growers' payments," said, Javed Kayani, Chairman PSMA Punjab.
He was of the view that price of sugar had crashed in the international and domestic markets. It was necessary to bring the gap between demand and supply in equilibrium through export instrument. According to the market mechanism, now prices have taken adjustments.
PSMA is also of the opinion that there should be no further spiral in sugar prices in the market and the Association has no objection if further extension in export is not extended.
According to Chairman PSMA, Iskandar Khan, sugar stocks with the mills is 1.9 million tons not 3.8 million tons as was projected by the government.
Official documents reveal that PSMA had approached Commerce Ministry on April 30, 2015 and May 26, 2015 stating that international price of sugar had declined from $450 to $360 per ton since the decision of ECC taken on December 24, 2014. The Association had requested to fix the Import Trade Price (ITP) of imported sugar as $600 or enhance customs duty on sugar from 20 per cent to 50 per cent along with antidumping duty to save farmers.
The ECC in its meeting on June 17, 2015 discussed the issue in detail and increased Regulatory Duty (RD) on sugar import by 150 per cent to discourage import from India with the condition that PSMA should ensure price stabilisation with the increased regulatory duty.
Comments
Comments are closed.