ISLAMABAD: A special meeting of the federal cabinet approved on Wednesday import of one million tons of sugar to overcome an expected shortfall in its production and procurement of one million tons of paddy by Passco at a re-fixed price.

The meeting, presided over by Prime Minister Yousuf Raza Gilani and attended by the four chief ministers, called for early installation of a pipeline to implement the Pakistan-Iran gas deal.

The cabinet was also scheduled to discuss and approve two holidays a week for public sector institutions under an austerity drive, but could not do so because the three-point agenda of the meeting consumed most of the time.

Information Minister Qamar Zaman Kaira told reporters that the issue of two holidays would be taken up in the next meeting.

Out of one million tons, 500,000 tons will be refined sugar and the remaining raw sugar, which will be imported in consultation with mill owners.

Mr Kaira admitted that as most of the sugar mills were owned by politicians, they had politicised the issue. He said that a case relating to cartelisation in the sugar industry was pending before the Supreme Court.

He denied that there was any proposal in the ECC to bring the CNG price at par with petrol.

In reply to a question about the NRO, he said the issue had been resolved in accordance with the desire of coalition partners and the government was ready to face cases in the Supreme Court after the legislation lapsed.

The cabinet also approved the gas load management plan for CNG stations and industrial units during winter -- Nov 15 to March 15. However, domestic and commercial consumers will receive uninterrupted gas supply during this period.

No new gas connections would be allowed during this period, except the areas where gas is produced, including Balochistan. Urea manufacturers will continue to get gas for raw material, but not for fuel purposes.

SNGPL will introduce and provide 25,000 special burners to domestic consumers at Rs600 per piece next year. It plans to increase the production to 100,000 burners in order to conserve gas up to 60 per cent.

SUGAR POLICY: The cabinet observed that there was no shortage of sugar because 168,000 tons were available with the TCP which would be released soon. The crisis was because of mismanagement in distribution, it said.

The meeting decided to maintain 500,000 tons of sugar as strategic reserve. It allowed the manufacturing of gur, but imposed a ban on its export.

Utility Stores, BISP and provincial governments have been asked to work closely to streamline sugar supply and distribution system.

The cabinet fixed an indicative price of sugarcane at Rs100-103 per 40kg and called for steps to ensure timely and judicious payment to farmers.Sugar mills which produce electricity from bagasse may switch over to coal in the off-crushing season to maintain production in power houses.

The meeting observed that Pakistan consumed more sugar per capital than any other country. Bangladesh consumed 1.5 million tons, whereas Pakistan’s consumption was 4.2 million tons, an official said citing an example.

PADDY: Because of a decline in the international market, the price of per 40kg basmati paddy has been revised at Rs1,250 from Rs1,500, 385 variety at Rs1,000 from Rs1,250 and Irri-6 at Rs600 from Rs700.

The cabinet was informed that exportable rice stocks stood at 5.76 million tons, which would further rise with the arrival of new crop.