Sindh cabinet okays Rs9.3/kg additional subsidy on sugar export

F.P. Report

KARACHI: Sindh Cabinet in order to resolve matter between the growers and the millers to start crushing in the province has decided to grant an additional subsidy of Rs9.3 per kg for export of surplus sugar.

This decision was taken in the cabinet meeting held under the chairmanship of Sindh Chief Minister Syed Murad Ali Shah here at the News Sindh Secretariat today. The meeting was attended by provincial ministers, advisors, special assistants, chief secretary and concerned secretaries.

The agriculture department presented an item in the cabinet that PASMA has requested for grant of subsidy to export sugar. Minister Home & Agriculture Sohail Siyal told the cabinet that there was 500,000 tons of surplus sugar available with the millers. PASMA says that the production cost of sugar come to Rs64.19 per kg. Therefore, purchase of sugar cane at Rs182 per kg was not feasible for them until and unless they are allowed export of surplus sugar and given subsidy on export at Rs20 per kg because the sugar price in the international market is very low.

It may be noted that the Economic Co-ordination Committee (ECC) of the cabinet has allowed export of 1.5 tons of sugar and a cash freight support of Rs10.7/kg even then the millers are not ready to start the crushing. Therefore, in order to resolve the matter the cabinet may approve the remaining amount of subsidy of Rs9.3 per kg on export of sugar, requested the agriculture department. The ministers and secretaries discussed the matter threadbare and finally the cabinet approved the subsidy on export of sugar. The chief minister Syed Murad Ali Shah said that there must a condition for the sugar mill owners to clear the liabilities of the growers to qualify for the getting the subsidy.

The other item the cabinet discussed in detail was fixing of wheat procurement target. The meeting was told that there was a bumper crop of wheat this year. It production is likely to come to 4.2 tons. It was pointed out that in the government stocks over 1.7 tons of wheat is stored.  The cabinet members discussed and decided to fix the procurement target of wheat at 1.4 tons for Rs13 per 40 kg. Minister for Food & Parliamentary Affairs Nisar Khuhro said that the provincial government was trying to export 300,000 tons of wheat but the federal government was reluctant to announce the rebate.

Sindh Energy Department presented an item in the cabinet for acquisition of additional working interests in the Hub block. The cabinet was told that Sindh Energy Holding Company (SEHCL) established in pursuance of Petroleum Policy 2012 to acquire 2.5 percent working interest in the oil & gas exploration and production blocks partly or wholly located in the province of Sindh.

The cabinet was informed that SEHCL has initially acquired working interest to full participation basis with PPL and OGDCL in seven oil and gas exploration and production blocks located in Sindh. The blocks with working interest share of OGDC are Ranipur 2.5 percent share, Armala 2.5 percent, Zorgarh 1.7 percent and of PPL Shah Bandar 2.5 percent, Khipro East 2.5 percent, Malir 2.5 percent and Hub 0.15 percent. The cabinet said that the Sindh government must invest in such projects in the larger interest of the people of the province. Therefore, it approved to acquisition of 2.5 percent working interests in HUB block of PPL.

The provincial cabinet also approved draft rules of water Hydrants in Karachi. The Minister for Local Government Jam Khan Shoro said that there were 200 hydrants in city and their net profit never gone upto Rs15 million but the profit of six hydrants being operated by water board comes to Rs80 million. “This is the result of sagacious policy of water board which is working in its interest and in the interest of the people,” he said. Under the approved rules there would be committee for selection of hydrant location and such other matters. A procedure has been worked out to operate and manage hydrants to be established on the land of water board. There should be a proper agreement with the contractor for arranging electric power source, there should be a quantity of water in gallons and period of supply, tankers specification, license and criteria for drivers have been specified in the rules.

The cabinet approved grant of charter to Government College University, Hyderabad.