Business

ECC allows additional export of 0.500 Million MT of surplus sugar

ISLAMABAD, Oct 11 (SABAH): Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Friday.

The meeting was attended by 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, Governor of the State Bank of Pakistan (SBP), Chairman of the Securities and Exchange Commission of Pakistan (SECP) along with Federal Secretaries and senior officers from the concerned Ministries and Divisions. The ECC 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 Provinces and FBR, existing stock of sugar stood at 2.054 Million MT as on 30.09.2024, while total consumption during the last ten months of current crushing year 2023-24 staying at 5.456 Million MT. It was further submitted that in the next 2 months, expected offtake was likely to stand at around 0.900 Million MT (based on FBR reported offtake for September i.e 0.450 Million MT). Therefore, after taking into account 0.140 Million MT quantity yet to be exported as per earlier ECC decisions, remaining expected stocks would be 1.014 Million MT as on 30th November 2024. Similarly, after earmarking one month’s off-take i.e 0.450 Million MT as strategic reserve, a surplus of 0.564 Million MT would still remain available.

The ECC had a threadbare 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 Million MT of surplus sugar with the same terms and conditions as allowed by ECC in its decision on 20th September 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 ninety (90) days of allocation of quota by the respective Cane Commissioners; and

• 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, already constituted vide Cabinet Division’s Notification dated 25th & 26th June, 2024 and 13th September, 2024, 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 (Power Division) seeking a compensation package for the deceased Chinese employees of Port Qasim Electric Power Company (Private) Limited.