Pakistan on Wednesday signed a deal for sale of 30,000 tons of refined sugar to Tajikistan at $528.25 per ton, which is below prevailing prices in the international market.
The agreement was inked following negotiations between the two countries for a couple of days. Tajikistan’s Agency on State Material Reserves Chairman Nurmahmad Akhmedov and Commerce Minister Makhdoom Amin Fahim signed the minutes of the Pakistan-Tajikistan negotiations for trade of sugar.
Tajikistan had approached Pakistan with a request to provide 30,000 tons of white refined sugar at cheaper rates on humanitarian grounds. The Economic Coordination Committee (ECC) of the cabinet has already allowed the sale at a price lower than the international market.
After negotiations, both sides agreed the rate of $528.25 per ton, $20 below the price on August 13 in the international commodities market. On August 13, the sugar price in the world market stood at $548.25 per ton, said the commerce ministry.
However, the ECC had taken the decision on sale at $20 per ton below the international market based on a summary that put the commodity price at $617.9 per ton in the global market, according to official documents. The agreed rate is also below the price in the domestic market, which is $535.5 per ton.
This year, the country has surplus sugar and stocks stand at 3.1 million tons, of which 332,057 tons are with the Trading Corporation of Pakistan (TCP). The government hopes that the stocks will be sufficient to meet demand until April 2013.
The Ministry of Commerce pointed out that the price concession had been given in the wake of humanitarian crisis faced by the people of Tajikistan.
The government of Tajikistan, while appreciating the goodwill gesture, requested for early delivery of sugar before the onset of winter season (September 30). Pakistan has promised to supply the commodity within shortest possible time.
Both parties agreed on a draft commercial agreement, except for the provision of inland and domestic transportation from mills to the point of delivery, which will be finalised as soon as the clarification, sought by the Ministry of Commerce from the ECC, is received.
The ministry said sugar will be exported to Tajikistan against 100% secured cash letter of credit that the central Asian state will open through a first-class internationally recognised bank. The delivery will be in three lots of 10,000 tons each.
Published in The Express Tribune, August 16th, 2012.
COMMENTS (11)
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@Gen zia ul Haq ka bab: u want them to die slowly? awesome!
We could make a lot of halwa for our mullahs with all that sugar
Our Agenda Journalist post some news Always with Malafide intention and then our HYPER ACTIVE Commentators start passing pre conceived partisan frustrations. Today New York Futures for October are 2.29 Cents Per Pound. Which comes to 455 USD per ton. In India Today the local Prices are 3452 Rs. Per 100 KG bag. Which is about 620 USD per ton (Mind you these are the local prices include Local Taxes also). Pakistan has sold Sugar Ex Factory for 528 USD to Tajik Government. Do you think Government will give commission to Amin faheem? So the comments are Idiotic. Tajikistan is located 609 Km from Torkham Border. Tajikistan is the only country in the world having Indian Airforce base. Present Government has improved relations with tajikistan and Now Tajikistan has refused to extend the contract of Indian base. President of Tajikistan has visited Pakistan and in spite of all the efforts and Propoganda of Uzbek Government has signed a contract to sell 1000 MW electricity to Pakistan. Daily Thousands of Tons Cement is being exported to Tajikistan. Pakistani Kinos, Vegetables, Textiles are being exported to Tajikistan and find onward route to Russian Markets. Pakistanis may not even be aware that today Mater Melon which they Bought is from Tajikistan most Probably and SWEET MELON which they bought is 100% from tajikistan. Daily many Trucks are now carrying Grapes to Pakistan. Pakistanis must be thinking that they are eating all these Items from Afghanistan. To know the truth they need to get out of their Life of IGNORANCE & MR KNOW EVERY THING. Pakistani government has done a great Job and instead of appreciating the Government our Gtreat INTELLECTUALS of the INTERNET and AGENDA JOURNNALIST True to their reputation are doing what they are good at.
wow. 30% below "Retail Price".
first be humane to pakistanis................
If we calculate the $20 on 30,000 Tons then it comes $ 600,000 which comes in PKR 56.4 Million. This is big scam and must be investigate.
Definitely something fishy here
first be humanitarian to your own populace and provide subsidized food stuff
Diabetes for Tajikistan. How nice!
Huh? Pakistan supplying on humanitarian grounds? lol
Don't trust Makdoom Amine Fahim.. He is anything but Amine.
Can we make sure that no money accidentally went into his account this time???