ANNOUNCEMENT 29 Nov 2012
The export quota for sugar has been increased from 500,000 to 700,000 tons with a condition of obtaining a letter of credit or an advance payment to be eligible to export.
NUMBER OF INTERVENTIONS
Official circular of the State Bank of Pakistan
EPD Circular Letter No. 9 /EPP.1 (51)-Sugar - 2012
EPD Circular Letter No. 10 /EPP.1 (51)-Sugar - 2012
EPD Circular Letter No. 06 /EPP.1 (51)-Sugar - 2012- July 2013
On 29 November 2012, Pakistans Ministry of Commerce notified an additional export quota of 200,000 tonnes of sugar. A quota of 100,000 had been announced earlier in January 2012, of 200,000 tonnes in May 2012 and of 200,000 tonnes in October 2012 (See related State Acts).
Each individual sugar mill is allowed to export up to 10,000 tonnes on a first come first served basis. Further, some additional restrictions have been imposed on the sugar mills to export. The Ministry has now required the sugar mills to a) have received at least 10% of the total contract value as an advance payment and ship the sugar within 60 days of approval from the central bank or to b) obtain a 60 days Letter of Credit from the buyer, for being eligible to export the sugar.
The procedure for allocating the quota was announced by the State Bank of Pakistan through EPD Circular Letter No. 09 /EPP.1 (51)-Sugar - 2012 issued on 4 December 2012.
Through Circular Letter No. 10 issued also on 4 December 2012, it was notified that the individual sugar mill cap of exports of 10,000 tonnes will not apply.
On 18 July 2013, the Economic Coordination Committee decided that all unutilized export quotas by the sugar mills within their time frames will be canceled. Further, all canceled and fresh quotas will be allotted to sugar mills on a first come first served basis on production of an irrevocable letter of credit within 60 days of shipment time.
The validity of this quota has been kept until a fresh quota independent of the above was announced in September 2013.