The report of the Sugar Commission states that the Sugar Cartel has been blackmailing the governments and dictating to them so that they can make maximum profit at the cost of public interest.
The present PTI and previous PML-N governments have been dancing to the tune of the sugar lobby and making decisions that have benefited the interests of the sugar mill owners.
Referring to the situation in 2014-15, the Commission in its report said that the Pakistan Sugar Mills Association (PSMA) along with the then Secretary Commerce Shehzad Arbab (current SAPM for Establishment) on November 11 The 2014 meeting agreed to start the crushing season next year, provided the government agrees to impose a 25% import duty on sugar imports and allow the export of 0.5 million metric tons of sugar. Rehabilitation and extension of RO 2013 (1) 77 should be done so that sugar can be exported to Afghanistan from land sources on dollar term and also subsidy on sugar export should be given.
The next day, on November 7, 2014, the Ministry of Commerce sent the same proposals to the ECC, which on November 12, approved the export of 0.5 million metric tons of sugar, the imposition of a 20% regulatory duty on sugar imports, and the above. Permitted to export sugar under RO.
The ECC did all this despite opposition from the Revenue Division. The Secretary Commerce once again presided over the inter-ministerial meeting with PSMA on 12 December 2014 and suggested that the sugar export quota be increased from 0.5 to 0.6 million metric tons, imposing a regulatory duty on sugar imports. To go
A total of Rs 6.5 billion will be provided for the subsidy which will be paid jointly by the federal and all provincial governments. On December 23, 2015, the Secretary of Commerce forwarded the same proposals to the ECC, which approved them the very next day. The commission pointed out that the PSMA had submitted its demands to the government before the start of the crushing season so that permission could be sought for the export of sugar, otherwise they would not have been able to start the crushing season.
The review of the next subsidy schemes reveals that this is the approach adopted by the PSMA at the beginning of each crushing season. On November 20, 2015, the PSMA at that time Calls on PM Nawaz Sharif Five days later, on November 25, 2015, the Prime Minister ordered the formation of an inter-ministerial committee to look into the problems of the sugar mills.
The committee met on November 30, 2015 and December 3, 2015 with the participation of Commerce Secretary Shehzad Arbab. The committee recommended the export of 0.25 million metric tonnes of sugar by March 2016 and also recommended a subsidy of Rs 10 per kg.
On December 6, 2015, another meeting was held under the chairmanship of Shehzad Arbab in which it was recommended that export of 0.5 million metric tons of sugar be allowed, cash freight support of Rs. 13 per kg be provided by the federal and provincial governments. Will pay
The minimum price of sugar per metric ton for Afghanistan should be set at 4 450, cash support should be paid through SBP. The next day, December 7, 2015, the ECC approved all the recommendations.
The commission pointed out that before the start of the crushing season, the PSMA was pressuring the government to allow the export of sugar with subsidy. The government, under pressure, allows it. The next year, on December 19, 2016, a meeting of the Sugar Advisory Board was held at the Ministry of Food Security in which it proposed to export 0.3 million metric tons of surplus sugar without subsidy.
The Ministry of Commerce proposed the export of 0.22 million metric tons of sugar to the ECC, which approved it on December 28, 2016. A meeting of SAB was held on March 16, 2017 in which an additional 0.4 million metric tons of sugar was allowed to be exported.
The next day, the Commerce Ministry proposed to the ECC to allow the export of 0.2 million metric tons of sugar. On March 28, 2017, the ECC approved the summary of the Ministry of Commerce. Two months later, in May 2017, the SAB, in consultation with the PSMA, proposed that an additional 1.2 million metric tonnes of sugar be allowed to be exported and that no time limit be set.
The Ministry of Commerce proposed the export of 0.6 million metric tons of sugar in July 2017, while the ECC allowed the export of only 0.3 million metric tons. That too without subsidies. On September 7, 2017, the PSMA in a meeting with the government demanded that 2 million metric tons of sugar be allowed to be exported and a subsidy of Rs. 18 per kg be given for the same.
The PSMA also met the Prime Minister in his office on the same day. A meeting was held on September 12, 2017 under the chairmanship of Commerce Secretary Younis Dhaga. Recommendations were sent to the ECC through the meeting after which it was decided that 0.5 million metric tonnes of sugar would be exported and a subsidy of Rs 10.7 per kg would be given.
The burden of subsidies will be borne jointly by the federal and provincial governments. On November 27, 2017, Secretary of Commerce Younis Dhaga called Summer Sent to EECC to allow sugar export.
On November 28, the ECC decided to allow an additional 1.5 million metric tons of sugar exports, subject to the conditions set at the September 14, 2017 meeting.
On November 22, 2017, the Sindh Agriculture Secretary presented a summary of subsidies for sugar exports. He informed the Cabinet that the PSMA has demanded additional support subsidy at Rs 9.30 per kg as well as an additional subsidy of Rs 10.70 per kg in addition to what has already been approved by the federal government.
But despite the opposition of the Minister for Food and the Secretary Finance, the Cabinet approved additional cash freight support of Rs 9.30 per kg as well as 50 per cent additional share in the form of cash freight support which was Rs 10.70 per kg which the federal government Had approved The following year, on September 11, 2018, the Commerce Division sent its recommendations to the ECC, which on October 2, 2018, approved the export of one million metric tons of sugar without any freight or financial assistance to the mill owners from the federation or the provinces. Will
On December 3, 2018, the PSMA met the Advisor to the Prime Minister on Trade and the Minister for Food Security and demanded that conditions be relaxed for the export of another one million metric tons of sugar while allowing the export of another 0.1 million metric tons of sugar. Go
The PSMA also demanded that the federal government immediately release the arrears in the form of subsidy of Rs 2 billion and at the same time ask the provinces to pay freight support.
The ECC meeting was held on December 4, 2018 in which the export quota was increased by 0.1 million metric tons. The ECC directed the Ministry of Finance to release the arrears of Rs. 2 billion in the form of subsidy.
The ECC left it up to the provinces to decide whether they want to give subsidy to sugar mill owners. Later, the PSMA members approached the Punjab government through the Punjab Chief Minister and approved a subsidy of Rs. 3 billion.