ECC raises sugar price by Rs 7

ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has approved a raise in the sugar price from RS 38 to 45 for utility stores, ARY NEWS reported.

The ECC met under the chairmanship of Federal Minister for Finance, Shaukat Tarin at the PM Secretariat here today.

Keeping in view the differential of 10-15% in the market and the Utility Store Corporation (USC) prices, i.e. from Rs. 6-9 per kg, the ECC decided to rationalize the price of sugar to be sold through USC retail outlets by increasing it by Rs.7 per kg i.e. from Rs.38 per kg to Rs.45 per kg.

The meeting was also briefed by Ministry of Industries and Production on progress on implementation of the National Sugar Policy 2009-10.

In view of the acute financial crunch experienced by the Pakistan Steel Mills, the ECC approved Bail Out Package for the PSM to meet its requirements for working capital and implementing its business plan.

The ECC approved the strategy designed for ensuring regular supply of major as well as minor crops in order to sustain food security.

The main elements of the strategy include timely announcement of support price for wheat and intervention/indicative price for major and minor crops.

The ECC plan also comprises enhancing farmer's access to modern crop varieties and new technologies and promoting adoption of good agricultural practices.

While discussing the subject of disposal of super basmati rice 2008-09 crop, the ECC gave approval to measures for disposal of rice lying in PASSCO godowns.

The measures include export of rice to Middle East, Iran, Europe or any other market on government to government basis.

It said sales/exports to be done through qualified agents/brokers and that US $ 900/ton would be the minimum base price for super basmati within 5% limit of broken rice.

The ECC also approved the Standardized Security Agreements for hydro power projects under the Policy for Power Generation 2002.

The ECC authorized the Board of PPIB to approve any project specific amendment in the Standardized Security Hydropower Agreements required during negotiations provided GOP obligations or liabilities are not increased.

The ECC approved the recommendations of the Committee on Revival of the Risalpur Export Processing Zone, allowing export of the manufactured goods from the REPZ as trading items to Afghanistan via land route.

While considering the issue of revision of re-lending policy of foreign loans/credits, the ECC approved that provinces may avail re-lending of the foreign loans on the same terms and conditions on which loans are signed by the GOP. In this regard the provinces would be allowed to issue their own bonds.