ISLAMABAD
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday allowed exporting surplus sugar to the tune of 500,000 metric tons and imposed a 25 per cent Regulatory Duty (RD) on commodity import aimed at helping out sugar industry purportedly facing a financial crisis.
The ECC, which met under the chair of Finance Minister Senator Ishaq Dar, discussed the summary of exporting sugar. On a proposal moved by Ministry of Commerce, the ECC allowed export of surplus sugar to the tune of 500,000 metric tons as recommended by the Ministry of Industries and Production with the condition that exports be made against irrevocable letter of credit or a firm contract with 15% non-refundable advance payment. Shipments be made within 45 days of the registration of contract; non-refundable advance payment shall be forfeited in favour of GoP in case of non-performance. Further, the quota as allocated must be exported by March 31, 2015.
The ECC approved imposition of 20% regulatory duty on import of sugar. On November 1, 2014, a delegation of Pakistan Sugar Mills Association (PSMA) met the Finance Minister and sought his help to resolve issues facing the sugar industry.
The delegation claimed that due to a surplus stock of sugar to the tune of 1.2 million tons, the industry had no other option but to export sugar to avoid incurring losses and ensure payments to sugarcane growers. The top economic decision making body of the county, the ECC, gave permission for exports by land route in dollar terms to Afghanistan and beyond with a view to incentivize exports. ECC, while according approval for export of surplus sugar, called upon the provincial governments concerned to ensure that mill owners pay all the dues to the sugarcane growers and that sugarcane crushing must start on time.
Sources informed The Nation that ECC deferred the summary for continuing subsidy on agriculture tubewells. The ECC meeting accorded formal approval for the wheat support price of Rs1300 per 40 kg. Finance Minister Ishaq Dar had earlier given anticipatory approval for the same with a view to facilitating wheat farmers. Earlier, the Finance Minister, in his capacity as Chairman ECC, had approved support price of wheat as Rs. 1300/- per 40 kg for the 2014-15 crop.
ECC also approved replacement of Mari Gas Company’s cost plus gas agreement with a market-oriented crude oil linked formula on the precedence of PPL for Sui and Kandhkot fields. It was also decided that 88% of the undistributable balance would be transferred to GoP as redeemable preference share capital after fulfilling all legal and corporate formalities while remaining 12% would be issued to General Public ensuring that their shares/interests in the company are fully protected.