By Staff Reporter
ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet approved the export of a further 100,000 tonnes of sugar on Thursday, with certain conditions, to help clear surplus stocks and support the domestic industry.
The decision, chaired by Finance Minister Muhammad Aurangzeb, follows a Sugar Advisory Board recommendation.
“The ECC approved the summary of the Ministry of Industries and Production regarding the export of further 0.100 million MT of Sugar,” the Finance Division said in a statement.
The approved summary includes conditions aimed at streamlining the export process and ensuring compliance. “In view of procedural delays encountered during export of sugar, the period allowed for export of sugar from the date of allocation of quota by respective Cane Commissioner shall be extended from forty-five (45) days to sixty (60) days,” the statement read.
Additionally, the ECC decided that “export proceeds shall be received in advance in case of Afghanistan only through banking channel however, export proceeds in case of LC may be allowed within a period of 60 days of opening of LC for export of sugar to other destinations.”
The committee also agreed to “delink benchmark for retail price of sugar from the permission to export sugar as retail price is not directly under the control of sugar mills.”
Furthermore, the condition of revoking export quota in case of non-payment of dues of the growers from proceeds of export of sugar shall be applicable only to the non-compliant mills rather than Pakistan Sugar Mills Association (PMSA) as a whole.
The ECC will monitor the market situation on a monthly basis and review its decision as per emerging needs.
The committee also instructed the Sugar Advisory Board to develop a comprehensive sugar policy within two months to address the sector’s challenges and ensure sustainable growth.
Industry officials said the decision comes after the government allowed the export of 150,000 tonnes of sugar in June, following pressure from millers who are part of the ruling Pakistan Muslim League-N coalition government.
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