ISLAMABAD, Aug 2: The Ministry of Commerce has proposed a package of incentives to help the sugar industry to cope with the fluctuating international market prices.

Senior officials in the ministry told Dawn on Friday that the proposal was sent to the Economic Coordination Committee (ECC) for its final approval.

The officials said that various duty slabs were proposed in case of fall in sugar prices aimed at providing relief to the sugar industry.

The maximum customs duty on import of both raw and refined sugar at import stage was reduced from 30 per cent to 25 per cent in the budget 2002-03.

The officials said that the proposal along with other issues regarding export of sugar glut would come under consideration in the ECC meeting scheduled for Monday.

Meanwhile, Chairman Pakistan Sugar Mills Association (PSMA), Ashraf Tabbani was also expected to meet the commerce minister, Abdul Razak Dawood, here on Saturday.

Sources in the PSMA said that the chairman would discuss the possible imposition of regulatory duty at import stage on sugar. He would also request the government to provide incentives for export of sugar from Pakistan.

PSMA was of the view that falling prices of sugar in international markets causing injury to the local industry. The local prices of sugar in the market vary from Rs20 to Rs22 per kg.

Explaining further, sources said that PSMA felt worry about that due to the bumper sugar crop in South America, the sugar prices would certainly go down and Pakistani importers would go for high imports in view of the higher prices of sugar in the local market.

According to the officials, government was bound to adhere to the commitment made with donors and the recent decrease of maximum tariff to 25 per cent was one of the conditionality of that commitment.

The officials said that if the PSMA felt any dumping of sugar in the local market, then they might go to National Tariff Commission (NTC) for seeking relief for the industry.

The government has already announced an export subsidy of 25 per cent for products whose annual exports has not been more than $5 million in any one of the last three years, the officials said and added since the sugar exports was much below the target so that the sugar industry could avail the facility besides sales tax refund of Rs3 per kg on export of sugar.