The Economic Coordination Committee of the cabinet has granted conditional approval for the export of an additional 0.1 million metric tonnes of sugar, on the recommendation of the Ministry of Industries and Production, reports The News.
An official statement issued by the Finance Ministry said ECC expanded the export period that had earlier been fixed at 45 days back to 60 days to address procedural delays. This extension applies with effect from the date when the respective cane commissioner allocates/exports quota.
Sugar exports to Afghanistan indeed required the ECC’s directive that the procedure would be binding for receipt of export proceeds in advance through a banking channel. For other destinations, it allowed 60 days for receiving export proceeds through LCs from the date of opening.
It was also explained by the ECC that the retail price of sugar is likely to be associated with export permissions, but this price directly is not under the control of mills. Further, the penalty for outstanding dues to growers would apply to non-complying mills only and not PSMA itself.
The ECC decided to review the market situation every month and make decisions in that regard. Briefing the Sugar Advisory Board as well to come out with an overall policy of sugar within 2 months for finding the way forward in the face of current and future challenges being posed by the industry.
