ISLAMABAD: The federal cabinet has ratified a decision by the Economic Coordination Committee (ECC) allowing the export of an additional 500,000 tonnes of sugar.
The federal cabinet approved the ECC decision through circulation, according to official sources. At its meeting on October 11, the ECC decided to permit the Pakistan Sugar Mills Association (PSMA) to export 500,000 metric tons (MT) of sugar in addition to the previously permitted export of 200,000 MTs of the commodity, under certain terms and conditions.
The PSMA was directed to provide an undertaking that sugar mills will start production by November 21 for the next crop year, and the export permission for mills not complying with this condition will be revoked. The PSMA must also provide an undertaking that the ex-mill price of sugar will not exceed Rs140 per kilogram.
The PSMA has provided both undertakings to meet the conditions for sugar export. The sugar mills are also required to ensure that export proceeds are received in advance through banking channels for exports to Afghanistan, while exports to other destinations may be made by opening letters of credit (LCs). All exporters must ensure that export consignments are shipped within 90 days of receiving the quota from the respective cane commissioners.
The federal cabinet has also appointed the deputy prime minister as the chairman of the Sugar Monitoring Committee, replacing the minister for petroleum. Permission for the export of sugar may be revoked in the interest of maintaining stability in the domestic market and controlling retail prices, as well as for other violations of the terms and conditions.
The export quota will be distributed among the provinces based on their sugar production, with over 64 percent allocated to Punjab, 6 percent to Sindh, and 30 percent to Khyber Pakhtunkhwa.