The Economic Coordination Committee (ECC) of the federal cabinet on Monday directed the National Food Security Ministry to coordinate with relevant authorities to curb smuggling and hoarding of sugar, while seeking regular reports to monitor the commodity’s availability and pricing.
In its inaugural meeting since the incumbent caretaker government assumed power, the ECC was informed that available sugar reserves had dwindled to 2.3 million metric tons, insufficient to meet domestic requirements before the next crushing season begins later this year. The disclosure has raised questions over the former government’s claims of substantial sugar production, which it had used to allow export of the commodity, despite concerns over triggering a shortfall that would require imports of sugar, denting the country’s much-needed foreign exchange reserves. Reportedly, the previous government’s decision to allow the export of 250,000 tons of sugar had seen the price of the commodity increase by nearly 100 percent, further fueling inflation.
During Monday’s meeting the Food Security Ministry urged the ECC to rescind the sugar export quota and impose a ban on all future sugar exports to preserve remaining stocks. The body, per a statement, revisited the former government’s export permission, maintaining the ban on sugar export was already in place since Aug. 10. The ECC then directed the National Food Security and Research Ministry to coordinate with relevant agencies and authorities to curb sugar smuggling and hoarding. It also requested regular reports on sugar and wheat stocks, availability, and prices from the ministry to enable it to monitor the availability and pricing of the commodity.
The ECC was also apprised of fears of hoarding for profiteering as the Sindh government has raised sugarcane prices to Rs. 425/40kg, which could encourage suppliers to withhold stocks until the crushing season to make more money.
The ECC meeting was chaired by interim Finance Minister Dr. Shamshad Akhtar and attended by the planning minister, I.T. minister, adviser to the P.M. on finance, federal secretaries and other senior officers.