Prime Minister Syed Yousuf Raza Gilani has convened the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Tuesday (today) to finalise the much-awaited surplus wheat offloading strategy, well-informed sources told Business Recorder.
On March 9, 2010, the Prime Minister had directed the Ministry of Food and Agriculture (Minfa) and the State Bank of Pakistan (SBP) to formulate a strategy considering the prospects of a good wheat crop, and submit it to the ECC in its next meeting regarding offloading existing stock of wheat, the sources added. The sources said Minfa and the SBP have finalised their recommendations, which are being considered by the ECC on Tuesday.
The committee will discuss prevalent sugar stock position along with white sugar quantity being imported by the Trading Corporation of Pakistan (TCP). In the previous meeting, the Prime Minister had directed the Finance Ministry to constitute a committee for streamlining the process of purchase of sugar and submit a report to the Prime Minister expeditiously.
The TCP Chairman had informed the ECC that he had called the sugar mill owners to advise them to participate in the bidding process. It is expected that the meeting will also consider a proposal of Pakistan Sugar Mills Association (PSMA) regarding imposition of 35 percent Regulatory Duty on imported sugar.
The sources said TCP is recommending to the ECC that sugar should be procured through tenders instead of government to government deal as international prices have declined drastically and will further decline. The ECC is also expected to discuss strategy to bring down milk prices throughout the country.
The Ministry of Livestock and Dairy Development had constituted a committee comprising provinces and all stakeholders to develop a workable mechanism based on proposals. The committee has finalised its report, which is being considered by the ECC on Tuesday, as the Cabinet Division failed to submit the recommendations to the ECC in its meeting on March 9, 2010. The sources said the State Bank Governor is also expected to brief the meeting on the Monetary Policy announced a couple of days ago.