ISLAMABAD: The government allowed on Tuesday the export of 1.5 million tonnes of sugar with a subsidy of Rs10.70 per kilogram.
The decision was taken by the Economic Coordination Committee (ECC) in view of significant surplus stocks as producers claim that sugar prices have crashed locally.
The ECC also imposed a regulatory duty on the import of liquefied petroleum gas (LPG) to match the higher cost of locally produced LPG. A petroleum levy was imposed on LPG earlier this month.
The decision to allow sugar exports is in line with the recent recommendation of the Council of Common Interests (CCI).
The CCI represents the federation as it is headed by the prime minister and has four chief ministers as its members.
The summary forwarded to the ECC highlighted that cumulative surplus sugar was around 5m tonnes. The carryover surplus stock from the previous year`s crushing season was around 2m tonnes.
Sugar consumption is around 5m tonnes per annum, or 20kg per capita every year.
The production in 2017-18 is expected to be over 8m tonnes.
The Pakistan Sugar Mills Association (PSMA) has expressed dissatisfaction at the decision. `The government allowed exports of 300,000 tonnes of sugar in July this year against demand for 1.2m tonnes.
The permission to export 1.5m tonnes of sugar has been given now, but things have changed during this period,` PSMA Senior Vice Chairman Iskander Khan said.
He added that sugar prices were around $550 per tonne in July-August, but now hover around $320 per tonne. `The delayed decision has not benehtted any-body,` he said.
The ECC also accepted the proposal to impose the regulatory duty at the rate of Rs4,669 per tonne on the import of LPG.
The ECC noted that the step will help maintain parity between the prices of imported and locally produced LPG.
The government also imposed the petroleum levy amounting to Rs7 per kg on locally produced LPG on Nov 1.
The ECC also allowed the disposal of 500,000 tonnes of surplus wheat stocks held by the state-owned Pakistan Agricultural Storage and Services Corporation Ltd (Passco)throughlocalsales.
The key function of Passco is to ensure food security by maintaining strategic reserves of commodities.
Wheat stocks start depleting inDecember while fresh crops began arriving in the market by the end of March.
In order to discourage fuel adulteration and tax evasion, the ECC allowed the addition of fuel marker in superior kerosene oil.
The ECC also approved the determination and notification of the Uch-II gas price as agreed under the gas pricing agreement by Oil and Gas Regulatory Authority (Ogra) underOgraOrdinance 2002.
The ECC accorded its approval for male ing necessary amendments to the Supplemental Agreement to Implementation Agreement for China-Pakistan Economic Corridor projects and permitted the procurement of goods and services as per the provisions of the framework arrangement and Export-Import Bank of Korea guidelines.
