Commerce Minister Engineer Khurram Dastgir Khan has convened a meeting of inter-ministerial committee on Wednesday (today) to review the price of sugar in the country. Official sources told Business Recorder the Economic Co-ordination Committee of the Cabinet in its decision of December 28, 2016 had allowed export of 225,000 MT of sugar subject to the condition that an inter-ministerial committee will meet in the first week of every month to review the sugar stock/export situation and in case domestic sugar price stability as compared to December 15, 2016, is not maintained, the committee would recommend to the ECC for stoppage of further exports.
The sources said, Chairman Pakistan Sugar Mills Association had assured the ECC that price stability in the market will not be affected if the permission to allow export of sugar is granted. According to sources, the first meeting of the inter-ministerial committee was held on January 11, 2017, with Commerce Minister in the chair. The committee took stock of the sugar supply and price situation in the light of the ECC''s decision and noted with concern that the domestic price of sugar increased by 3% as compared to December 15, 2016.
The committee also noted that there were no reasons under normal market conditions which could justify a price increase because the supply situation improved since December 15, 2016 due to regular inflows during the peak crushing season and there is no unusual increase in demand.
After consultation with other Ministries, Commerce Ministry wrote a letter to PSMA and conveyed that it has been desired by the committee that the PSMA, as per its commitment, must ensure that the price stability of sugar in the domestic market at the level of December 15, 2016 is maintained. The sources said the committee will review wholesale and retail prices of sugar in the in local market in the light of statistics to be collected from different sources Wednesday (today).
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