ISLAMABAD: The Economic Coordination Committee (ECC) has approved the export of an additional 0.500 Million MT of surplus sugar.
The ECC chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb made the approval comes with the same terms and conditions established in the ECC’s previous decision on September 20, 2024.
The ECC saw an extensive discussion on the proposal submitted by the Ministry of Industries and Production. The proposal aimed to allow the export of more sugar in light of the surplus stocks, even after accounting for the domestic consumption and ongoing exports for the current crushing year.
As of September 30, 2024, the total stock of sugar in the country stood at 2.054 million MT, while total consumption for the first ten months of the 2023-24 crushing year was recorded at 5.456 million MT.
With an expected offtake of 0.900 million MT in the remaining two months, and an additional 0.140 million MT already earmarked for export, the expected sugar stocks by the end of November would be 1.014 million MT.
The ECC also took into consideration the need to maintain a strategic reserve of 0.450 million MT for one month’s domestic consumption. After factoring this reserve, the remaining surplus of 0.564 million MT will be available for export.
The ECC has allowed export of surplus sugar with the same terms and conditions as allowed by ECC in its decision on September 20. The Pakistan Sugar Mills Association (PSMA) must provide an undertaking that all mills will begin production by November 21 for the upcoming crop year. Failure to comply will result in the revocation of the mills’ export quotas.
Exporters are required to ship the consignments within 90 days of receiving their export quota from the respective Cane Commissioners. The permission for export can be revoked by the Sindh Agriculture Board (SAB) if necessary, to maintain the stability of the domestic sugar market and ensure price control.
In addition to the sugar export issue, the ECC also approved a compensation package for the deceased Chinese employees of Port Qasim Electric Power Company (Private) Limited.
The meeting was attended by various key ministers, including Minister for Industries and Production Rana Tanveer Hussain, Minister for Power Sardar Awais Ahmed Khan Leghari, and Minister for Economic Affairs Mr. Ahad Khan Cheema. Senior officials from the Finance Ministry, the State Bank of Pakistan (SBP), and the Securities and Exchange Commission of Pakistan (SECP) also participated in the discussions.