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ISLAMABAD: On the demand of the sugar industry, the Economic Coordination Committee (ECC) of the Cabinet on Friday allowed the export of another 500,000 tonnes of sugar with the condition to start sugarcane crushing by Nov 21 and approved a compensation package for the families of the deceased Chinese workers of the Port Qasim Power Project last week.
The meeting of the ECC presided over by Finance Minister Muhammad Aurangzeb discussed a summary submitted by the Ministry of Industries and Production seeking permission for a further export of 500,000 tonnes of sugar given the 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 Federal Board of Revenue (FBR), the existing stock of sugar stood at 2.054 million tonnes as of Sept 30, while total consumption during the last 10 months of the current crushing year 2023-24 staying at 5.456m tonnes. Moreover, the expected market offtake in the next two months was estimated at around 0.9m tonnes, based on FBR’s reported offtake for September, i.e. 0.450m tonnes. Therefore, after considering the quantity of 0.140m tonnes that has yet to be exported as per earlier ECC decisions, the remaining expected stocks will be 1.014m tonnes as of Nov 30. Similarly, after earmarking one month’s offtake, i.e. 0.450m tonnes as a strategic reserve, a surplus of 0.564m tonnes would remain available.
Links permission with start of cane crushing by Nov 21
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 0.500m tonnes of surplus sugar on the same terms and conditions as allowed by ECC in its previous decision of Sept 20, with certain modifications.
This permission shall be subject to the provision of an undertaking by the Pakistan Sugar Mills Association that their mills will commence production by Nov 21 for the next crop year, and the export quota of any non-compliant mill will be revoked.
Also, the sugar exporters shall ensure that the consignments are shipped within 90 days of the quota allocation by the respective cane commissioners. The permission for export would be subject to revocation by the Sugar Advisory Board at any time in the interest of domestic market stability and retail price maintenance.
The ECC also directed that the Cabinet Committee on Monitoring Sugar Exports, already constituted by the federal cabinet in June and revised in September, would continue to regularly monitor and update the Federal Cabinet on the demand, supply and price situation of sugar in the country, including in the case of export of 0.5m tonnes of sugar as well.
The ECC also 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 (Pvt) Ltd.
Meanwhile, the Cabinet Committee on State-Owned Enterprises (CCoSOEs), also presided over by the finance minister, approved a request of the Ministry of Planning, Development and Special Initiatives for categorisation of the National Disaster Risk Management Fund, a non-profit public-owned organisation working to enhance resilience to natural disasters, as a strategic State-Owned Enterprise.
Published in Dawn, October 12th, 2024
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