ISLAMABAD : Dec 15,2022: Finally, the Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a summary of the ministry of National Food Security to allow export of 0.1 million tons of sugar.
The ECC will review stocks position and market sentiments on fortnightly basis to grant fresh approval for export of another 0.1 million tons of sugar and this would be an on-going process as long as the government remains in confidence that export of surplus sugar was not adversely affecting the commodity rates in the local market.
Sources said the government had taken the demand of the industry seriously after its repeated calls and finally it decided to follow a segmental approach for grant of approval for export of surplus sugar .
Pakistan has around 1 million tons of surplus sugar and keeping in mind its piled up stocks and bumper crop and good yield this year , the industry had linked start of the crushing season and payment of officially fixed rate of Rs 300 for per maund (40 kg ) sugarcane to the growers with export of surplus stocks . Although industry went into the fresh crushing under duress to meet the deadline of November 25 last, but it was sceptical of good days and timely payments to the growers of their produce.
During the last one and half months , Pakistan Sugar Mills Association (PSMA) had held a series of meetings with the government side to convince it that only export of surplus sugar could bring a wave of fresh air for all stakeholders of sugar sector , besides earning much- needed foreign exchange for Pakistan.
Although National Food Security minister, Tariq Bashir Cheema, had hard position on the issue and he repeatedly conveyed to the PSMA representatives that he was not in favour of taking their case to the ECC for export of surplus sugar .
PSMA meanwhile, took its case to Finance minister , Ishaq Dar, who finally understood urgency involved and persuaded to the minister for National Food Security to take a serious look into the case as denial for export of surplus sugar could have serious repercussions for whole of sugar sector . Ishaq Dar’s opinion finally worked and National Food Security minister , Tariq Bashir Cheema , moved a summary for consideration of the ECC for export of surplus sugar on Wednesday last.
Even export of sugar under segmental approach will pull the industry out of recession and help it make timely payments of sugarcane to the growers, besides earning a sizable amount of foreign exchange for the government.