The ECC was informed that Pakistan Sugar Mills Association vide its letter dated 6th May 2017 approached the Ministry of Commerce stating that the sugar industry has produced a record quantity of sugar leading to a surplus of 1.475 million metric tons which was resulting in delayed payments to the sugarcane growers. The PSMA requested that a meeting of the Sugar Advisory Board (SAB) might be convened to review the overall availability and stock position of sugar for allowing further exports. The SAB, in its meeting held in the Ministry of Industries & Production on 17th May 2017, recommended allowing the export of 1.2 million metric tons of sugar in view of the available surplus.
The PSMA's request and the SAB's recommendations were discussed in the meeting of the Inter-Ministerial Committee on 25-05-2017 and on the recommendations of the Committee, the ECC in its decision dated 7th June decided that in order to maintain the price stability during Ramazan, the decision on allowing further exports of sugar may be deferred till the last week of Ramazan and that PSMA may be asked to express its "firm resolve in writing to maintain price stability" as agreed in SAB meeting dated 17-05-2017.
As decided, the Inter-Ministerial Committee reviewed the sugar supply and stock position in its meeting held on 20th June 2017. The committee was briefed that the price of sugar in the domestic market remained stable which has benefited the consumer. The committee also observed that out of the total quantity of 0.425 million metric tons allowed for export by the ECC, a total of 0.391 million metric tons sugar quota has, so far, been allocated by State Bank of Pakistan (SBP) and only 0.348 million metric ton was exported. The meeting was informed that PSMA assured adherence to the instructions of the government regarding price stability of sugar in letter and spirit. After detailed deliberations, the committee made the following recommendations:
The export of 0.3 million metric tons of sugar, in addition to the quantities already allowed for export by the ECC, may be allowed subject to the conditions that (a) the abovementioned committee constituted by the Prime Minister will meet during first week of every month to review the sugar stock/export and price situation; (b) in case of any abnormal increase in the domestic price of sugar, the committee would recommend to the ECC the stoppage of further exports; (c) the export quota will be approved and monitored by the State Bank of Pakistan (SBP) on first come first serve basis; (d) and exports will be completed within 60 days of quota allocation by the SBP. The Inter-Ministerial Committee will meet again to review the stock/export and price situation and recommend enhancement of export quantities, if deemed appropriate.
Copyright Business Recorder, 2017