October 01, 2013
The State Bank of Pakistan (SBP) on Monday asked banks to process the sugar export cases for the export of 0.5 million tons of commodity. However, the SBP has linked the export with clearance certificates issued by the Cane Commissioner to ensure that following the agreement with ministry of commerce concerned sugar mill has cleared the dues of growers.
Recently, the federal government allowed sugar mills to export 0.5 million tons of sugar. Mills have been asked to export a quantity of 250,000 tons of sugar up to 31st October, 2013; and the remaining quantity of 250,000 tons from November 1, 2013 onwards. However, as per the condition, sugar mill owners will clear the outstanding arrears of Rs 1.7 billion (as reported by the representative of PSMA), to be paid to growers. Mills will start crushing sugarcane in Sindh and Punjab by 1st November and 15th November, 2013, respectively. The export quota will be allocated on first come first served basis by the SBP.
In case of applications for exports against contract, shipment will be made within 45 days of the registration of contract with the State Bank and the non-refundable advance payment will be forfeited in favour of GoP in case of non-performance in the stipulated period. The SBP will display the summary information covering number and quantity approved against the applications so received from authorised dealers on its website which may be viewed by the concerned stakeholders and general public. Following the ministry of commerce directives, the State Bank on Monday advised the authorised dealers to process the cases as per following mechanism:
1. Receipt of a minimum 25 percent of total contract value as advance payment (evidencing by advance payment voucher, swift message and reporting schedule/credit advice) and exporter must ship sugar within 45 days from the date of SBP approval.
2. Obtaining an irrevocable L/C from the buyer and exporter must ship sugar within 45 days from the date of SBP approval.
3. Banks will forward the requests of sugar mills along with attested photocopies of clearance issued by the concerned Cane Commissioner to the concerned sugar mill in compliance with conditions mentioned at para (i) a) and b) above, contract, E-Form, irrevocable L/C or advance payment voucher, swift message and reporting schedule/credit advice, as the case may be, for SBP approval.
4. All requests should be addressed to the Director, Exchange Policy Department, State Bank of Pakistan, I I Chundrigar Road, Karachi with reference to the related F. E. Circular Letter on the subject.
5. The SBP will allow permission against each E-Form on first come first served basis.
6. Bank will send sugar export update to the Director, Exchange Policy Department State Bank of Pakistan, I I Chundrigar Road, Karachi on a daily basis as per following format failing which SBP will initiate action under related rules & regulations:-
7. Incomplete requests will not be considered. Authorised dealers have been advised to bring the same to the notice of all their constituents.
Courtesy Business Recorder.
Published in ZaraiMedia.com