ISLAMABAD, Sept 18: Commerce minister, Humayun Akhtar Khan said on Thursday that government has no plan to provide subsidy on export of surplus sugar.

Talking to reporters here, the minister said that his ministry has already shown its reservation on the implementation of task force recommendations for purchasing 100,000 tons sugar by the Trading Corporation of Pakistan.

He said that already the government had sustained a loss of Rs593 million on account of export of 100,000 tons of sugar by the TCP earlier.

He said that he opposed the demand of the sugar millers asking for subsidy on sugar export during the cabinet meeting. However, he said that in case of any decision taken by the cabinet members, he was supposed to accept it and implement it.

Well-placed sources in the commerce ministry told Dawn on Thursday on condition of anonymity that the ministry did not have the capability to procure and stock the purchased sugar stocks, which was contingent of two conditions mainly payment of all dues to the growers and starting of crushing season on November 1, 2003.

These two conditions, the sources said, were related to the provinces as sugar mills came under the regulatory control of the provinces.

The ministry of commerce being at federal level could not impose such condition on the sugar millers. Moreover, the ministry/TCP could not ensure the fulfilment of these two conditions and therefore the issue of purchase would remain a question mark, sources added.

Prime Minister, Mir Zafarullah Khan Jamali has allowed recently commerce ministry to purchase 100, 000 metric tons of sugar from millers to help them dispose of the surplus stock laying with them through TCP at the prevalent ex-mill rates.

The TCP would keep it as buffer stock for releasing at the appropriate time to keep prices stabilised in the local market, said the sources.

The decision was taken by the prime minister while approving the short- and long-term strategy recommended by a task force headed by finance minister.