Import of 500,000 tons of raw sugar on the cards

Proposal for import of raw sugar as opposed to processed sugar was put forth by private sector and by experts.

KARACHI: The federal government is likely to approve the import of 500,000 tons of raw sugar to meet demand for the commodity in the coming months.

Official sources told The Express Tribune that the proposal for the import of raw sugar as opposed to the import of processed sugar was put forth by the private sector and by independent experts. A special committee was formed on the advice of the Economic Coordination Committee to monitor the overall demand and supply of sugar in the country in the wake of recent floods. A meeting of this committee has been summoned in Islamabad on Thursday under the chairmanship of the Minister for Industries and Production Mir Hazar Khan Bijarani.

Minister for Petroleum and Natural Resources Syed Naveed Qamar, Minister for Commerce Makhdoom Amin Fahim, Minister for Agriculture Nazar Mohammad Gondal, Minister for Science and Information Technology Azam Swati, Federal Board of Revenue Chairman Sohail Ahmed, Planning Commission Deputy Chairman Nadeemul Haq, Trading Corporation of Pakistan (TCP) Chairman Anjum Bashir and other federal and provincial grain commissioners are also expected to attend the meeting.

Official sources revealed that the participants will be informed about the extent of damage caused to the sugarcane yield by recent floods, the expected supply of sugar in the upcoming season and the expected demand for the sweetener in coming months. “We expect a shortage of about 500,000 tons of sugar which may be overcome by the import of raw sugar,” explained an official source.

Ample stocks for current demand

“We are in a position to offer more sugar supplies to the provinces if the government issues such instructions,” TCP Chairman Anjum Bashir told The Express Tribune. He revealed that one hundred thousand tons of sugar was made available during Ramazan by the TCP to the provinces at a rate of Rs56 per kilogramme and added that, “these stocks were to be sold at Rs61 per kilogramme in the provinces throughout Ramazan.” He added that 40,000 tons of sugar was picked up by provincial governments during the holy month and stressed that, “we can supply more stocks of sugar to the provinces at the same rates.” Bashir said that the TCP currently has stocks of about 170,000 tons of sugar while at least another 50,000 tons will arrive in the country within the next 10 days.

Millers push for export ban

Sugar mill owners have reiterated their demand for a ban on the export of raw sugar from the country.

“The shortage of sugar can be met much more efficiently if government places a ban on the export of raw sugar and also imports raw sugar instead of processed sugar,” Pakistan Sugar Mill Owners Association Chairman Iskandar Khan said.

He asserted that the recommendation of the import of 500,000 tons of raw sugar was also made by sugar mill owners and added that, “about $100 million may be saved by processing the raw sugar in local mills.” Khan also urged the government to limit procurement through the TCP and allow the market mechanism to address demand and supply issues.

Published in The Express Tribune, September 15^th, 2010.