The federal government has allowed sugar mills to export commodity without starting crushing of sugarcane at full capacity. The Ministry of Commerce (MoC)'s through a Memorandum No.7(2)/2012-Exp-III dated December 10, 2018, has enhanced the sugar export quota for sugar mills for 2018-19 by some 100,000 metric tons from one million metric tons to 1.1 million metric tons.
As per ministry directives, the condition that sugar mills would start crushing at full capacity by 15th November, 2018 to be eligible for export of sugar has been waived to facilitate the sugar mills. "The clearance certificate issued by the Cane Commissioner concerned certifying that the respective sugar mill has started crushing at full capacity from November 15, 2018 as required", the State Bank said in a circular issued on Tuesday.
As per previous directives issued in October 2018, it was mandatory for the exporting mills to submit a clearance certificate, which will also certify that concerned sugar mill has started crushing at full capacity by November 15, 2018.
However, the sugar mills will still be required to submit the clearance certificate issued by the Cane Commissioner to the effect that sugar mill concerned has cleared outstanding dues of the farmers for sugarcane crop up to 2017-18 in order to be eligible for export, it added.
According to ministry of commerce notification, the Economic Coordination Committee (ECC) of the Cabinet has underscored the importance of providing relief to the farmers by ensuring start of crushing by sugar mills at the earliest.
It was also decided that since the entire issue of freight support arose due to varying procurement prices of sugarcane fixed by the provincial governments, therefore, the freight support may be determined/paid by the respective Provincial Governments, if deemed appropriate.
In addition the Finance Division to release Rs 2 billion for payment of outstanding claims of freight support for sugar export. Moreover, the ministry has requested the State Bank of Pakistan to revise its circular regarding procedure of allocation of quota for export of sugar in accordance with fresh decisions of the ECC of the Cabinet.
SBP has advised Authorized Dealers to bring the same to the notice of all their constituents. While, all other instructions on the subject shall remain unchanged.