ECC allows export of half a million tonnes of surplus sugar

ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet Friday allowed additional export of 0.5 million metric tons of surplus sugar.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the ECC meeting which discussed a summary submitted by the Ministry of Industries and Production seeking permission for a further export of 500,000 metric tonnes of sugar in view of availability of sufficient surplus stocks even after catering for the proposed and ongoing exports, the requirement for remaining two months of the ongoing crushing year, as well as maintenance of strategic reserves.

The meeting was told that as per data provided by the provinces and FBR, existing stock of sugar stood at 2.054 million metric ton (MMT) as on Sept 30, 2024, while total consumption during the last 10 months of current crushing year 2023-24 was 5.456 MMT.

It was further submitted that in the next two months, expected offtake was likely to stand at around 0.900 MMT (based on FBR reported offtake for September i.e. 0.450 MMT). Therefore, after taking into account 0.140 MMT quantity yet to be exported as per earlier ECC decisions, remaining expected stocks would be 1.014 MMT as on Nov 30.

After earmarking one month’s off-take i.e. 0.450 MMT as strategic reserve, a surplus of 0.564 MMT would still remain available.

The ECC had a discussion on the proposal and in light of the recommendation from relevant stakeholders and ministries, approved the proposal for an additional export of 0.500 MMT of surplus sugar with the same terms and conditions as allowed by ECC in its decision on Sept 20, 2024, with the following modifications/ insertions: This permission shall be subject to the provision of an undertaking by PSMA that their mills will commence production by 21st November, 2024 for the next crop year and export quota of any non-compliant mill will be revoked. Exporters shall ensure that the consignments are shipped within 90 days of allocation of quota by the respective cane commissioners. This permission may be revoked by SAB at any time in the interest of stability of the domestic market and maintenance of retail price.

The ECC further directed that the Cabinet Committee on Monitoring Sugar Exports would continue to regularly monitor and update the cabinet on demand, supply and price situation of sugar in the country, including in the case of export of 0.500 MMT of sugar as well. The ECC also discussed and approved a summary submitted by the Ministry of Energy seeking a compensation package for the deceased Chinese employees of Port Qasim Electric Power Company (Private) Limited.

Minister for Industries and Production Rana Tanveer Hussain, Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Economic Affairs Ahad Khan Cheema, Minister of State for Finance and Revenue Ali Pervaiz Malik, the State Bank of Pakistan (SBP) governor, the Securities and Exchange Commission of Pakistan (SECP) chairman along with federal secretaries and senior officers from the relevant ministries and divisions attended the meeting.