Monday June 24, 2024

ECC spells out three conditions for sugar export

By Mehtab Haider
January 27, 2023

ISLAMABAD: In order to facilitate the export of 250,000 metric tons (MT) of sugar, the Economic Coordination Committee (ECC) of the Cabinet approved placement of three conditions for allowing the export of sweetener.

The ECC considered the summary that the condition on realisation of export proceeds through LC and the maximum time of 60 days may be revised in the following manner: “Export proceeds shall be received either in advance through banking channel, or within a period of sixty days of opening of LC for export of sugar.”

The following condition might be added such as the exporter should ensure that the consignment was shipped within 30 days of quota allocation. The quota for export of sugar might be allocated from already decided provincial quota, through Provincial Cane Commissioner, Punjab, as already approved by the ECC in the case of Sindh.

An official statement was issued after the ECC meeting, stating that Federal Minister for Finance and Revenue Mohammad Ishaq Dar presided over the meeting of ECC of the Cabinet on Thursday. The commerce ministry had submitted a summary on export of sugar with proposals from the SBP and PSMA on certain conditions regarding mode of payment and time period for realisation of export proceeds. It was informed that the ECC had already allowed export of a total of 250,000 MT of sugar on Jan 3, 2023. However, certain queries had been raised by the stakeholders in the process of export of sugar.

For facilitation of export of sugar, the ECC, after detailed discussion, approved revised conditions, which may be considered as follows:

i. Provincial cane commissioners will allocate quota within seven days of the issuance of the notification.

ii. Export proceeds shall be received either in advance through banking channel, or within a period of 60 days of opening of LC for export of sugar. iii. The exporter shall ensure that the consignment is shipped within 45 days of quota allocation.

Federal ministers Naveed Qamar, Khurram Dastgir Khan, Murtaza Mahmud, Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, Shahid Khaqan Abbasi MNA/ex-PM, SAPM on Finance Tariq Bajwa, SAPM on Government Effectiveness Dr Muhammad Jehanzeb Khan, Coordinator to PM on Commerce & Industry Rana Ihsan Afzal, Governor SBP, federal secretaries and other senior officers attended the meeting.