KARACHI: The Sindh government decided on Monday to grant an additional subsidy of Rs9.3 a kilogram for export of surplus sugar to resolve the deadlock between the growers and millers to start the crushing process in the province.

This decision was taken in the cabinet meeting held under the chairmanship of Sindh Chief Minister Syed Murad Ali Shah here at the New Sindh Secretariat on Monday. The meeting was attended by provincial ministers, advisers, special assistants, chief secretary and the secretaries concerned.

The cabinet also decided on procurement of 1.4 tonnes wheat for Rs13 per kg, acquisition of 2.5 per cent working interests in the PPL’s Hub block as proposed by the energy department, approved draft rules of hydrants in Karachi and granted charter to Government College University, Hyderabad.

CM links payment of subsidy to clearing of growers’ liabilities by sugar mill owners

The sugar export matter was discussed ‘threadbare’ and finally the cabinet approved the proposed subsidy on export of sugar. However, the chief minister linked the payment of subsidy to clearing of all liabilities of the growers by the sugar mill owners.

Wheat procurement

The other item discussed in the cabinet in detail was fixing of a wheat procurement target. The meeting was told that there was a bumper crop of wheat this year with likely production of 4.2 million tonnes. It was pointed out that in the government stocks over 1.7m tonnes of wheat was stored. The cabinet members discussed and decided to fix the procurement target of wheat at 1.4m tonnes for Rs13 per kg.

Minister for Food and Parliamentary Affairs Nisar Khuhro said that the provincial government was trying to export 300,000 tonnes of wheat but the federal government was reluctant to announce the rebate.

The Sindh energy department asked for the acquisition of additional working interests in the Hub block. The cabinet was told that Sindh Energy Holding Company (SEHCL) was established in pursuance of Petroleum Policy 2012 to acquire 2.5pc working interest in the oil and gas exploration and production blocks, partly or wholly located in Sindh.

The cabinet was informed that SEHCL had initially acquired working interest to full participation basis with the Pakistan Petroleum Limited (PPL) and the Oil and Gas Development Company Limited in seven oil and gas exploration and production blocks located in Sindh.

Rules for hydrants

The provincial cabinet approved draft rules of hydrants in Karachi.

Minister for Local Government Jam Khan Shoro said there were 200 hydrants in the city and their net profit never went above Rs15m, but the profit of the six hydrants operated by the water board came to Rs80m. “This is the result of the sagacious policy of the water board, which is working in its interest and in the interest of the people,” he said.

After the meeting, Sindh Information Minister Syed Nasir Shah briefing the media on the cabinet decisions said that the provincial government had received Rs60 billion short from the federal transfers. “This attitude causes problems in the financial health of the province,” he said.

Brushing aside the impression of giving subsidy on export of sugar just to accommodate a particular person, Nasir Shah said the decision was taken to start the crushing. Under the new arrangement of giving additional subsidy and fixing sugar cane price a deadlock between the growers and millers had been brought to an end.

Published in Dawn, December 5th, 2017