12 unscrupulous sugar mills: Afghanistan seeks

Afghanistan has reportedly sought diplomatic help from Pakistani government to recover over-payment from at least 12 "unscrupulous" sugar mills mostly owned by the country''s political elite.Economic Co-ordination Committee(ECC) of the Cabinet had allowed export of 0.5 million tons of sugar with a subsidy at the rate of Rs 13 per kg subject to (i) payment of Rs 180/40kg to growers; and (ii) export of sugar to Afghanistan and Central Asia at a minimum price of $450 per ton.According to official documents available with Business Recorder, Afghanistan Sugar Traders Association has revealed to Pak-Afghan Joint Chamber of Commerce and Industries that as per announcement from State Bank of Pakistan (SBP) in 2015 on special recommendation and request of Pakistani sugar mills that whatever rate is finalised the buyers have to transfer $450 per ton as standard rate even though most contracted rates were below $450 per ton.Earlier payment transfer was done according to the actual sale contract rate with mills with no excess amount required to be transferred, but since 2015 most of Afghanistan sugar importers transferred excess payment against each actual sale contract according to the new announcement from SBP.The condition however was that excess payment would be returned to Afghanistan importers in PKR in Pakistan according to the open market conversion rate immediately after submission of Pak-Afghan cross border documents."Now some Pakistani sugar mills are not returning that excess amount to Afghanistan importers while importers have already submittedPak-Afghan cross border documents," the sourcesadded.The Joint chambers of both countries argues that Pakistani sugar mills are "cheating" which is negatively effecting Pakistan and Afghanistan Sugar Association''s business relationship.This accounts for not only Afghan sugar importerslosing trust in Pakistani sugar mills but they have also started diverting bookings and importing sugar from India and other countries."Recover our outstanding payment from mills in order to restore Afghanistan sugar importers trust in Pak sugar exporters so that we may restart booking and importing from Pakistan mills," said Ziaulhaq Wazirzai, Chairman Pak-Afghan Joint Chamber of Commerce and Industries.The joint Chamber has also approached Pakistaniambassador to Afghanistan, Syed Ibrar Hussain and sought his help.Sources in Ministry of Foreign Affairs told Business Recorder that Pakistan''s top envoy to Afghanistan has sent a letter to Foreign Office, in which he stated that most of the Afghan sugar importers paid excess amounts on the condition that this would be returned in Pak rupees after submission of cross border documents which have been submitted. Some Pakistani sugar mills are not refunding the excess amount.The list of sugar mills which are not refunding the agreed amount are as follows;Hamza Sugar Mill, Trandianwala Sugar Mills, Fecto Sugar Mill, Pattoki Sugar Mill, Baba Farid Sugar Mill, Ashraf Sugar Mill, JDW Sugar Mills, Ramzan Sugar Mill, RYK Sugar Mill, Hunza Sugar Mill, Chaudary Sugar Mill, Kashmir Sugar Mill.News SourceNews Collated byPAKISSAN.comCourtesy Business Recorder