The private sector's apprehensions had proved true a couple of days ago, when an inter provincial meeting co-chaired by Industries and Production Minister Mir Hazar Khan Bijarani and Food and Agriculture Minister Nazar Muhammad Gondal decided to depute officials on each and every sugar mill to monitor their productions on a daily basis.
The sources said the Economic Co-ordination Committee (ECC) of the Cabinet, in its meeting on January 12, 2010 had decided that the private sector be given incentives to import 0.75 million tons of white sugar by waiving of sales tax, excise duty, etc, thus ensuring that the commodity reaches the country before June 1, 2010. Accordingly, a meeting will be held in the Ministry of Finance with Pakistan Sugar Mills Association (PSMA) to procure the required quantity of sugar for Utility Stores Corporation (USC) intervention.
Other decisions were as follows: (i) Chairman Pakistan Procurement Regulatory Authority (PPRA) Board may look into procurement rules to allow matching with the lowest bidder and; (ii) it was decided that a meeting with PSMA should be arranged to propose the level of strategic reserves of sugar to be held by the TCP and to put a proposal in the next ECC meeting for a decision.
The Commerce Ministry, sources said, informed that as proposed by the Chairman PPRA Board, a summary has been submitted for approval of the Prime Minister regarding the relaxation of PPRA rules for import of 1.2 million tons of white sugar by the TCP.
The sources said the Commerce Ministry further intimated the ECC that the tendering process for import of 0.5 million tons sugar has been completed and specifications of Icumsa and polypropylene bags as revised by the PSQCA have been incorporated.
The Industries Ministry informed the ECC that a meeting was held on February 1,2010 with PSMA, provincial and federal government stakeholders wherein it was suggested: (i) The government may procure sugar through TCP as and when the situation improves; (ii) reluctance was shown by the PSMA to import sugar. The government is making efforts to import white sugar on government-to-government basis; and (iii) regarding import of 0.5 million tons sugar by TCP, the entity has already floated tenders.
The sources said the ECC directed the Commerce Ministry to ensure a transparent competition and to get a fair price of sugar in case of government-to-government deals. The ECC also lauded the efforts of the Minister for Science and Technology to resolve controversy over Icumsa. The government has decided: (i) Solution colour Icumsa unit mix will be 120; (ii) sulphur dioxide mg/kg max 15 and; (iii) in packages the 100-kg bags to be deleted.