ISLAMABAD, Feb 3: The Economic Coordination Committee of the cabinet directed the Trading Corporation of Pakistan (TCP) on Tuesday to import 200,000 tons of refined sugar to stabilise prices in the market.

The ECC, which met with Adviser to the Prime Minister on Finance Shaukat Tarin in the chair, took the decision after delaying it by at least one month due to pressure from ministers having a farming background.

The sugar price has already risen to Rs45 per kg in the open market in anticipation of a decline in sugarcane production by 20 per cent this season.

In the international market, the sugar price has reached $360 per ton. After announcement by India and Pakistan about importing sugar, prices may touch $450 per ton in a few months.

A senior official in the ministry of food and agriculture told Dawn that cane production had declined by four million tons in the world to 162 million tons this year. He said that sugar price in the international market had increased by 15 per cent in the past one month. The current landed cost of sugar at the Karachi Port stood at Rs40 per kg, he added.

According to the official, Pakistan was facing a shortfall of one million tons this year because of massive smuggling to neighbouring countries and decline in cane production this year.

It is estimated that around 300,000 tons of sugar was smuggled to Afghanistan.The meeting asked the TCP to maintain sugar price at utility stores at Rs38 per kg.

The committee decided not to impose duty on export of molasses, advising TCP to offload 100,000 tons of sugar from its own stocks through utility stores to supplement domestic market needs.

It reviewed the Federal Board of Revenue’s proposals for modification/revision of regulatory duties on paper, paper board, ceramics tiles, flat rolled products of iron/steel, glassware and potatoes.

The meeting decided to allow duty exemption for a 12-month window period to international franchise food chains for import of potatoes to encourage foreign direct investment.

The ECC advised the government organisations concerned to take up the matter of indigenising the production of processed ware potatoes with international food chains during the said period.

It, however, decided that regulatory duty on all other imports of ware potatoes for sale in the market would remain.

The committee deferred consideration of a proposal to modify regulatory duty on flat-rolled steel products and advised the FBR to review overall steel-related proposals in consultation with stakeholders, complete technical homework and resubmit the proposal.

It allowed the FBR to modify/revise regulatory duties on other items of input used in local industry of paper board and ceramic tiles.

The meeting considered FBR’s summary for items included in the list of anomalies cases taken up by Tariff Anomaly Committee, besides other proposals for levy of regulatory duty and approved its proposals to modify/revise regulatory duties on items like viscose twisted yarn and cryogenic tanks.