ANNOUNCEMENT 07 Sep 2013
An export quota of 500,000 tons of sugar was approved with an inland subsidy of Rs. 1 per kg.
NUMBER OF INTERVENTIONS
On 7 September 2013, Pakistan's Economic Coordination Committee approved an export quota of 500,000 metric tons of sugar. Half of the quota is allowed to be exported until 31 October 2013 and the other half from 1 November 2013 onwards.
A sugar export quota of 500,000 tonnes was last announced in December 2012.
Additional conditions have been imposed on the sugar mills to be eligible for exports. These include clearing outstanding dues of Rs. 1.7 billion and starting crushing of sugarcane in Sindh and Punjab by 1 November 2013 and 15 November 2013, respectively.
The quota will be allotted on a first come first served basis and the exports have to be made against an irrevocable letter of credit or a contract with 25% non-refundable advance payment. The shipment has to be made within 45 days of the registration of contract with the State Bank of Pakistan.
On 20 December 2013, the State Bank of Pakistan notified that the ECC has approved extending the period of export of the above quantity of sugar until 28 February 2014.
An export quota of 250,000 tonnes was later announced on 27 March 2014.
The additional export quota announced in September 2013 also included an inland subsidy of Rs.1 per kg. This subsidy is less than the Rs. 1.75 per kg. subsidy announced for the original export quota.