ECC Permits Sugar Export by Sindh Mills

Hi everyone! I hope you are all doing well. Welcome back to another blog. This article will discuss the topic in detail “ECC Permits Sugar Export by Sindh Mills”. The Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Ishaq Dar, has made a significant decision. They have granted approval for the export of 32,000 metric tons of sugar by mills in Sindh. This decision comes after a meeting held on Friday.

During the meeting, the Ministry of Commerce requested the ECC to allow the export of the remaining sugar quota within a specific timeframe. The ECC, taking into consideration the request, has agreed to permit the export of 32,000 metric tons of sugar.

Sources say that the implementation of this export permission is scheduled to begin from 12th June onwards. The allotted time for the export is 60 days. The decision aligns with the ruling of the Sindh High Court.

The federal government, in a significant decision, has given its approval for the export of a substantial quantity of sugar.

The government designated 250,000 MT of sugar for distribution among sugar mills in Punjab, Sindh, and Khyber Pakhtunkhwa. However, the export quota allocation for sugar mills in Sindh temporarily halted the distribution process. The reason behind this pause is ongoing litigation in the Sindh High Court. This legal dispute brought about a delay and uncertainty in the allocation of export quotas for Sindh-based sugar mills.

Despite the setback, there has been a recent development in this matter. The Sindh High Court, in its order dated 9-03-2023, issued a favorable decision allowing the allocation of a portion of the total quota. The Cana Commissioner Sindh allocated 80,000 MT of sugar to 32 sugar mills located in Sindh. The court approved the distribution of only 48,000 MT out of the originally assigned quantity.

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The Pakistan Sugar Mills Association (PSMA) had formally approached the Ministry, seeking permission to export the remaining 2,861 MT of sugar. These sugar mills had made the necessary payments but were unable to export within the stipulated time frame. Considering the request, the ECC of the Cabinet convened a meeting on 21-06-2023. During the meeting, the ECC approved the export of the remaining quantity of sugar quota. The approval granted allows the sugar mills to export their remaining sugar quota until 15-07-2023.

The Sindh High Court, in its recent ruling, has explicitly stated that the responsibility lies with the Federal government, SBP, Customs, and Port authorities to ensure the expeditious export of sugar from the mills. It is crucial that they cooperate and facilitate this process without delay.

On 9th June 2023, the Ministry of National Food Security and Research (MNFSR) received a letter requesting them to convene a meeting of the Sugar Advisory Board (SAB). The purpose of this meeting is to discuss the initial proposal that was put forward during a previous SAB meeting.

The Ministry of Commerce took immediate action in response to the court’s order. They sent a letter on 9th June 2023 to the Ministry of National Food Security and Research (MNFSR). The letter requested the MNFSR to convene a meeting of the Sugar Advisory Board (SAB) to discuss the matter at hand.

Furthermore, the initial proposal suggested allowing the export of 250,000 MT of sugar. This matter needs careful consideration. The SAB meeting will provide a platform for discussing various aspects of sugar export from the mills.

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