PM moves to halt export of 0.35m tonnes sugar
Okays moving of summary to ECC to prevent the remaining quota of sweetener from leaving country
Reuters file photo of sugar
ISLAMABAD:
Amid surging prices of sugar on the heels of a flour shortage crisis, Prime Minister Imran Khan on Friday approved moving a summary to the Economic Coordination Committee (ECC) of the cabinet to immediately stop the export of the remaining 350,000 tonnes of the sweetener reserved under quota for the purpose.
The summary will simultaneously propose allowing the import of 300,000 tonnes of sugar through the private sector as the government seeks to break the monopoly of barons who have earned billions of additional rupees by increasing the prices of the commodity by almost 30% in the past one year.
According to sources privy to the development, the participants of a recent meeting of the Sugar Advisory Board were informed that a sugar stock of 1.719 million tonnes was available in the country.
Traditionally, a strategic reserve of two months is maintained in the country with a monthly requirement of 458,000 tonnes.
The participants of the meeting were briefed that besides the availability of three months’ stock of sugar in the country, the process of crushing was also under way and would continue till March this year, further improving the situation.
However, despite the reports about the availability of sufficient stocks, the sugar prices have been continuously increasing.
The premier took serious notice of the matter as there was no cogent reason for the price surge.
He held a series of meetings with the divisions concerned and the chief secretaries of the provinces to ensure that all administrative steps were being taken to check hoarding and profiteering.
Nevertheless, despite administrative actions by the government machinery, the prices continued to climb up causing anguish among the people.
To complement the administrative action in checking price hike of sugar, the premier approved a proposal for the ECC to immediately stop the remaining export quota of sugar and to advise the provincial governments to implement the Price Control and Prevention of Profiteering and Hoarding Act on a sub-national level. The summary also proposed importing 300,000 tonnes of sugar through the private sector without taxes and duties.
No financial support will be provided to the importers by the federal or provincial governments. The decision will be implemented after its approval by the ECC.
The prices of sugar went up after the Pakistan Sugar Mills Association (PSMA) managed to secure the government’s permission to export 1.1 million tons of sugar.
Dr Firdous Ashiq Awan, the special assistant to prime minister on information, had announced a few days ago about the government’s decision to import sugar and discontinue its export.
Sugar is the second commodity that the Pakistan Tehreek-e-Insaf government will import after first allowing its export. Earlier, the government decided to import 300,000 tonnes of wheat after first allowing its export.
The decision to import sugar is tantamount to an admission that the government cannot break the sugar cartel in the country that has increased per kilo prices by Rs17.4 or 29% since January 2019.
In January last year, the average price of one-kilo sugar was Rs58.41 that went up to Rs75.77 as of January this year, according to the Pakistan Bureau of Statistics. Since July last year, the sugar exports stood at 181,477 metric tons, according to the PBS data.
According to Iskandar Khan, the president of PSMA Khyber-Pakhtunkhwa chapter, the prices of sugar went up due to an increase in General Sales Tax rate from 8% to 17%, high financing cost that surged from 8% to 16% and increase in sugarcane price, said
He added that there was no shortage of the commodity in Pakistan and prices went up because of other factors.
“The PTI government had given permission to export 1.1 million tonnes of sugar. Over 600,000 tonnes have already been exported.”
The decision to allow export of sugar often results in an increase in the price of the commodity in the local market.
Amid surging prices of sugar on the heels of a flour shortage crisis, Prime Minister Imran Khan on Friday approved moving a summary to the Economic Coordination Committee (ECC) of the cabinet to immediately stop the export of the remaining 350,000 tonnes of the sweetener reserved under quota for the purpose.
The summary will simultaneously propose allowing the import of 300,000 tonnes of sugar through the private sector as the government seeks to break the monopoly of barons who have earned billions of additional rupees by increasing the prices of the commodity by almost 30% in the past one year.
According to sources privy to the development, the participants of a recent meeting of the Sugar Advisory Board were informed that a sugar stock of 1.719 million tonnes was available in the country.
Traditionally, a strategic reserve of two months is maintained in the country with a monthly requirement of 458,000 tonnes.
The participants of the meeting were briefed that besides the availability of three months’ stock of sugar in the country, the process of crushing was also under way and would continue till March this year, further improving the situation.
However, despite the reports about the availability of sufficient stocks, the sugar prices have been continuously increasing.
The premier took serious notice of the matter as there was no cogent reason for the price surge.
He held a series of meetings with the divisions concerned and the chief secretaries of the provinces to ensure that all administrative steps were being taken to check hoarding and profiteering.
Nevertheless, despite administrative actions by the government machinery, the prices continued to climb up causing anguish among the people.
To complement the administrative action in checking price hike of sugar, the premier approved a proposal for the ECC to immediately stop the remaining export quota of sugar and to advise the provincial governments to implement the Price Control and Prevention of Profiteering and Hoarding Act on a sub-national level. The summary also proposed importing 300,000 tonnes of sugar through the private sector without taxes and duties.
No financial support will be provided to the importers by the federal or provincial governments. The decision will be implemented after its approval by the ECC.
The prices of sugar went up after the Pakistan Sugar Mills Association (PSMA) managed to secure the government’s permission to export 1.1 million tons of sugar.
Dr Firdous Ashiq Awan, the special assistant to prime minister on information, had announced a few days ago about the government’s decision to import sugar and discontinue its export.
Sugar is the second commodity that the Pakistan Tehreek-e-Insaf government will import after first allowing its export. Earlier, the government decided to import 300,000 tonnes of wheat after first allowing its export.
The decision to import sugar is tantamount to an admission that the government cannot break the sugar cartel in the country that has increased per kilo prices by Rs17.4 or 29% since January 2019.
In January last year, the average price of one-kilo sugar was Rs58.41 that went up to Rs75.77 as of January this year, according to the Pakistan Bureau of Statistics. Since July last year, the sugar exports stood at 181,477 metric tons, according to the PBS data.
According to Iskandar Khan, the president of PSMA Khyber-Pakhtunkhwa chapter, the prices of sugar went up due to an increase in General Sales Tax rate from 8% to 17%, high financing cost that surged from 8% to 16% and increase in sugarcane price, said
He added that there was no shortage of the commodity in Pakistan and prices went up because of other factors.
“The PTI government had given permission to export 1.1 million tonnes of sugar. Over 600,000 tonnes have already been exported.”
The decision to allow export of sugar often results in an increase in the price of the commodity in the local market.