ISLAMABAD: The Government has replaced Petroleum Minister Dr Musadik Malik with Deputy Prime Minister/ Foreign Minister Senator Ishaq Dar as Chairman of Sugar Monitoring Committee, reportedly to take lenient decisions, well informed sources in Ministry of Industries and Production told this correspondent.
Dr Musadlik Masood Malik, sources said, was seen as too harsh during a couple of meetings of Sugar Monitoring Committee and his ‘inappropriate’ behaviour was reported to those who matter in government.
On October 11, 2024, Industries and Production Division briefed the ECC that a meeting of the Sugar Advisory Board (SAB) was held in the Ministry of Industries and Production (MOI&P), Islamabad on October 8, 2024 under the Federal Minister for Industries and Production.
ECC allows additional export of surplus sugar
During the meeting, SAB reviewed the data provided by the Provincial Cane Commissioners, FBR and PSMA on sugar stocks for the crushing year 2023-24.
There was an agreement that the existing stock of sugar was 2.054 million MT as on September 30, 2024 and total consumption during the last ten months of current crushing year 2023-24 was 5.456 million MT excluding exports.
It was also agreed that in the next two months, expected off-take would be around 0.900 million MT based on the actual quantities lifted in September as reported by FBR; i.e., 0.450 million MT. After taking into account this level of off-take and the expected export of 0.140 million MT already permitted by the Federal Government, the remaining stock was likely to be 1.014 million MT as on November 30, 2024. Further, after earmarking one month’s off-take i.e. 0.450 million MT as strategic reserve, a surplus of 0.564 million MT would remain available.
Hence, if the Pakistan Sugar Mills Association (PSMA) could ensure commencement of sugar cane crushing by the third week of November, additional export of 0.500 million MT was possible. Accordingly, SAB recommended export of 0.500 million MT of sugar subject to the conditions given in the minutes.
The Industries and production Division briefed the forum that in view of the recommendation of SAB, the ECC may like to allow export of 0.500 million MT of surplus sugar subject to the following terms and conditions: (i) PSMA shall provide an undertaking that their mills will commence production by November 21, 2024 for the next crop year and the export quota of a mill which does not comply with this condition shall be revoked; (ii) PSMA shall provide an undertaking that ex-mill price of sugar shall not increase beyond Rs.140/kg; (iii) the benchmark retail price per kilogram of sugar will be taken from SPI as on June 13,2024 with the additional margin of Rs.2.00/kg; (iv) SAB shall monitor ex-mill and retail price of sugar regularly, at least on weekly basis and in case the retail price of sugar rises beyond the benchmark price plus Rs.2.00, SAB shall immediately revoke export permission; (v) the export proceeds shall be first utilized by sugar mills for clearing outstanding payments of growers and the export quota of a sugar mill which does not comply with this condition shall be revoked;(vi) all exporters shall ensure that export consignments are shipped within ninety days of the allocation of quota by the respective Cane Commissioners; and (vii) export proceeds shall be received in advance through banking channel in case of Afghanistan while export for other destinations may be made through opening of LCs.
The quota for export of sugar shall be distributed amongst provinces as per current year’s actual production: (i) Provincial Cane Commissioners shall allocate quota for the export of sugar within seven days of the issuance of the notification by the Ministry of Commerce as per policy approved by the ECC; (ii) the ex-mill and retail price of sugar as well as payment of pending dues to growers shall be monitored and enforced by the respective provincial authorities and a report will be submitted to the SAB on weekly basis; (iii) the State Bank of Pakistan shall update the SAB and ECC on export of sugar, on fortnightly basis; (iv) this permission may be revoked by SAB at any time in the interest of stability of the domestic market and maintenance of retail price or otherwise in case of violation of any of the term or condition; and (v) No subsidy whatsoever shall be provided to the exporters by the federal or provincial government.
The ECC also recommended that the Federal Cabinet may appoint Deputy Prime Minister/ Minister for Foreign Affairs as Chairman of the Sugar Monitoring Committee in place of Minister for Petroleum. The ECC also directed the Industries and Production Division to brief the whole process and time taken of export starting from approval of ECC to the final shipment in the next meeting of ECC.
The sources said that the federal cabinet has approved decisions and recommendations of the ECC, in a summary through circulation.
Copyright Business Recorder, 2024