KARACHI: The Trading Corporation of Pakistan (TCP) sold 25,200 tons of imported sugar in the open market on Friday.
In a press release, the TCP said the sweetener was sold at prices ranging between Rs59,070 and Rs65,500 per ton on ex-godown basis.
Earlier, a sub-committee of the Economic Coordination Committee had instructed the TCP to auction 50,000 tons of sugar in the open market in order to improve supplies and bring down retail prices. The TCP has already auctioned 24,800 tons of imported sugar on October 6.
TCP spokesperson Khizar Hayat said the corporation received offers from 127 parties of all four provinces. Applicants were restricted to bid for quantities ranging between 50 and 500 tons.
Hayat added the “TCP has awarded tenders to 55 different parties” and the “weighted average price was Rs59,908 per ton”. The TCP will collect Rs1.5 billion from the auction, while Wednesday’s auction is expected to rake in Rs1.52 billion.
President Karachi Wholesalers Association Anis Majeed said the current retail price of refined sugar is about Rs73 per kg. “Given that the average price for this sugar is about Rs60 per kg, if this has in fact been sold to small and medium-sized wholesalers it should bring down prices,” he said. Duty on the import of raw sugar has been slashed from 25 per cent to zero. A statutory notification issued by the Federal Board of Revenue (FBR) said the zero-rating has been implemented for cane sugar and beet sugar.
The duty concession has been allowed without any limitations, according to a statement issued by the ministry of industries. There is no bar on the amount of raw sugar that may be imported, nor is there a prescribed time period.
Published in The Express Tribune, October 9th, 2010.
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