Industry intimated: No non-budgeted subsidy on sugar export: MoF

ISLAMABAD: The Ministry of Finance (MoF) has conveyed to the country’s sugar industry that no non-budgeted subsidy will be extended to export of sugar, well-informed sources in the Commerce Ministry told Business Recorder.

On March 14, the Ministry of Commerce briefed the Economic Coordination Committee (ECC) of the Cabinet that as per the revised terms and conditions for export of sugar, Provincial Cane Commissioners had been entrusted with allocation of quota for export of sugar within seven days of the date of issuance of notification by Ministry of Commerce as per policy already approved by the ECC, while exporters were required to ensure that the consignments were shipped within 45 days of quota allocation.

Moreover, export proceeds should be received either in advance through banking channel, or within a period of days of opening of Letter of Credit (LC) for export of sugar.

ECC allows export of additional quantity of sugar

It was apprised that sugar exporters had approached Ministry of Commerce with the concern that revision of the terms and conditions of export of sugar as well as creation of shipment bottlenecks due to closure of Torkham border was causing delays in shipment. Therefore, exporting sugar mills may not be able to meet the deadline of shipment within 45 days of quota allocation, and had requested that the time for shipment may be increased from 45 days to 60 or 90 days.

Ministry of Commerce proposed that in view of concerns of the exporters, the time limit for shipment of sugar may be increased from 45 days to 60 or 90 days of quota allocation.

During the ensuing discussion, Ministry of Commerce further contended that the matter regarding export of sugar was sub judice in Sindh with exports operational in KPK and Punjab.

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