ISLAMABAD: The federal cabinet has decided that 15 days’ extension in export of unutilized quota is not for those sugar mills which have failed to use export proceeds to pay to growers, well-informed sources told Business Recorder.
On September 3, 2024, in the context of its earlier decision of June 25, 2024 submitted by the Ministry of Industries and Production, regarding the export of 150,000 MT of sugar, the cabinet clarified that on the request of the Ministry of Industries and Production it extended the time period for export of sugar by two weeks in the following manner with the direction that all other terms and conditions stipulated in the decision of Cabinet of June 25, 2024 shall continue to apply:
(i) for the unutilized export quota of sugar mills from Punjab fifteen days effective from the date of issuance of this decision of the Cabinet; and
(ii) for other provinces the extension period shall commence from the date of allocation of quota by the Provincial Cane Commissioner.
The Cabinet further decided that the extension shall not apply to the sugar mills which have failed to use export proceeds for payments to growers in terms of the ECC decision of June 13, 2024 and ratified the federal cabinet on June 25, 2024.
Ministry to clamp down on sugar mills behind price surge
The cabinet had decided that the Cabinet Committee already constituted will meet on June 25 and June 26, 2024 and will regularly update it on the demand, supply and price situation of sugar in the country.
On August 25, 2024, the Cabinet deferred ratification of the ECC decision of August 22, 2024 regarding export of further 0.100 million MT of sugar. The Cabinet further directed the Industries and Production Division to refer back the case to the ECC for reconsideration in a holistic manner by taking into account all relevant parameters afresh, including retail price, available stocks and domestic requirement of sugar till the stat of the crushing season.
ECC in its meeting of August 22, 2024 was informed by Industries and Production Division that 0.150 million MT of sugar was allowed to be exported on June 13, 2024.
The forum observed that the benchmark for export of sugar should be wholesale price instead of retail price which would ensure appropriate monitoring of sugar prices.
The forum also proposed deregulation of sugar sector, formulation of sugar policy and proper zoning for sugarcane crop in order to cater to requirements of the country.
Ministry of Planning Development & Special Initiatives added that the Pakistan Bureau of Statistics (PBS) dashboard provides both wholesale and retail prices on daily basis which would help monitor the prices effectively.
The forum was also informed that ex-mill price was not an indicator of price trends in the market as reportedly the sugar mills involved in price manipulation had investors who hoard stocks outside the sugar mills in separate warehouses.
The forum directed Industries and Production Division to ensure daily monitoring and reservoir of sugar stocks and prices. In case any spike in the price trend is noted, action should be taken by the Industries & Production Division against the violators forthwith.
Copyright Business Recorder, 2024