KARACHI, June 2: The government has agreed in principle to remove regulatory duty on export of yellow peas which normally imported for re-export after value addition.

The government last month had imposed 35 per cent regulatory duty on export of all pulses including yellow peas to check the rising trend in local prices.

However, on strong presentation the Pakistan Commodity Importers Association (PCIA) has been given an assurance by the government for exempting yellow peas from regulatory duty.

According to PCIA chairman Raees Ashraf Tarmohammad the government would issue a notification on Saturday (today), in this regard which would help exporters to fulfil their export commitments.

He said that PCIA members had opened LCs for import of 105,000 tons of yellow peas from Canada at the rate of $215 per ton C&F Karachi and out of these around 7,500 tons were already committed for re-export prior to the imposition of regulatory duty on May 19, 2006.

He also disclosed that the government was also considering to give Rs2 per kg subsidy on sugar at import stage. He said this would help build pressure on hoarders and millers to release stocks in the market.

He said Dr Salman Shah, adviser to the prime minister on finance, had assured that the government would lift 50 per cent of sugar stocks from importers to save them from losses by giving subsidy at import stage.

He said in April sugar was being quoted at Rs37 to Rs38 against Rs34 to Rs35.50 per kg cost of import. However, now wholesale prices had come down which were being quoted at Rs33 to Rs34 per kg.