The Economic Coordination Committee (ECC) of the cabinet has allowed export of 500,000 tonnes of sugar and imposed 20 per cent regulatory duty on its import to facilitate the industry’s cash flows and earn foreign exchange.
In a meeting, presided over by Finance Minister Ishaq Dar yesterday, the committee also allowed the price of gas from the Mari field to be gradually increased by almost three-fold in five years and formally approved an increase in wheat support price of Rs100 per 40kgs.
According to sources, a delegation of Pakistan Sugar Mills Association (PSMA) recently met the minister and demanded permission for export and 25pc duty on import to discourage price reduction.
They had warned that in view of surplus stocks and cash constraints, the millers might not be blamed for delay in the crushing season and financial problems of growers.
The minister had agreed to the demands and directed the ministries of commerce and industries to move a formal case.
An official statement said that the ECC allowed export of 500,000 tonnes of surplus sugar on the request of the commerce ministry and also supported by the ministry of industries and production. The exporters will be required to export the commodity against irrevocable letters of credit (LCs) or a firm contract with 15pc non-refundable advance payment.
