ISLAMABAD: The Inter-Ministerial Committee (IMC) on Tuesday decided to recommend exports of 0.6 million tonnes of sugar to the Economic Coordination Committee (ECC) of the Cabinet.

The committee, led by its chairman Minister for Commerce Khurram Dastgir Khan, said the fresh quantity of sugar export will be in addition to the 0.425m tonnes already allowed subject to the condition of price stability in the domestic market is maintained.

An official statement issued after the meeting, quoting the commerce minister, said that in case of any abnormal increase in the domestic price of sugar, the committee would recommend to the ECC to halt further exports.

Once 0.45m tonnes out of the allowed quantity of 0.6m tonnes are exported, the IMC will meet again to review the stock/export situation and recommend enhancement of export quantities, if deemed appropriate.

“There has been a record sugar production this year and commerce ministry is striving for maximum exports of sugar after fulfilling domestic needs,” claimed the commerce minister.

The IMC was tasked by the ECC of the cabinet to monitor the supply, price and export situation of sugar.

To review the situation, the committee noted with satisfaction that the strategy of the ministry of commerce to allow exports of surplus sugar while keeping a strict check on the prices in the domestic market has remained successful and the sugar price in the country has declined for the first time in the month of Ramazan, contrary to the trend during the previous years.

“In 2016, the sugar prices reached up to Rs70 but in this Ramazan the prices are stable at Rs56, which is benefiting consumers throughout the country and has helped in controlling inflation,” the commerce minister said.

The committee was briefed that the sugar price in the domestic market according to the Sensitive Price Index for the week ending June 15 was Rs56.30 per kg which was 11.1pc lower than the level of December 15, 2016 when the export of sugar was allowed by the ECC.

The committee also observed that out of the total quantity of 0.425m tonnes allowed for export by the ECC during the current crop year, a total of 0.391m tonnes sugar quota has, so far, been allocated by State Bank of Pakistan and around 0.348m tonnes has been exported.

Published in Dawn, June 21st, 2017