ISLAMABAD, Aug 9: The Economic Monitoring Committee (EMC) on Saturday directed the Trading Corporation of Pakistan (TCP) to procure sugar for improving its stock position.

The EMC, which met under the chairmanship of Finance, Privatisation and Investment Syed Naveed Qamar, reaffirmed the decision of the Economic Coordination Committee (ECC) of the Cabinet to have sufficient stocks by early procurement of sugar through the TCP.

The finance minister also directed the Ministry of Food Agriculture and Livestock (Minfal) to effectively check the shortage of urea in the open market. The fertiliser producing companies, he said, must pass government’s subsidies and concessions to the farmers. The meeting reportedly took into account general complaints that farmers were not being paid due subsidies and concessions as were announced by the government.

The Ministry of Industries and Production and Minfal were advised to adequately regulate, plan and execute fertiliser marketing and distribution system to the benefit of farmers.

The EMC also advised Minfal to effectively coordinate with Fertiliser’s Production Units, distribution outlets and the provincial administrative setups to ensure that urea/fertiliser is provided to farmers on controlled rates.

Minfal briefed the EMC on food grains pricing trend in the open market which was considered as stable. Mr Qamar asked Minfal to brief EMC during next meeting on domestically-produced wheat stock and that of the imported one for a comprehensive decision on its equitable distribution as per provinces’ consumption requirements.

The ministry of commerce briefed the EMC regarding import of non-essential and luxury items. The finance minister directed the officials of the commerce ministry and FBR to submit recommendations on the subject for consideration and review of EMC.

The meeting, in principle, is believed to have decided to impose new taxation to discourage non-essential goods. The issue, the minister said, should have been covered in the 2007-08 budget.

Minfal updated the EMC on stock of sugar and wheat. The committee directed Minfal to urgently submit proposals to increase sugarcane production, appreciating that the ban on import of refined sugar, which already stands lifted, had led to stabilising sugar prices. Minfal informed the EMC that the projected edible oil consumption was likely to be around 2.8 million tons.

The committee observed that decreasing international edible oil prices had registered a downslide for domestic oil and ghee rates in the open market. The EMC expressed satisfaction over it.