KARACHI, July 27: The federal government would decide what to do with 270,000 tons of sugar, lying with the Trading Corporation of Pakistan (TCP) as a buffer stock. It can either save it for export or keep it for the local consumption after ascertaining the actual sugarcane crop size.
"The government has so far decided to keep sugar with the TCP as a buffer stock," chairman TCP, Masood Alam Rizvi told Dawn on Tuesday. Earlier, there were reports that the government was considering to export 100,000 tons of sugar from the buffer stock and would issue tender in July.
"The government has not taken as yet any decision on sugar export," he added. The federal government, he said, was currently watching the situation very carefully and it would take the decision keeping in view the market conditions and sugarcane crop size, he added.
"I think the government will be in a position to decide the fate of buffer stock at the end of August after analyzing the sugarcane crop situation," Rizvi said. Sugar prices have already started crawling up in the market in view of market reports about lower sugarcane crop size coupled with hoarding in the markets by vested interest to fleece consumers on the occasion of Shab-e-Barat and Ramazan when demand outstrips supplies.
Market sources are expecting a drop of 15-20 per cent in sugarcane crop owing to low sugarcane area cultivation from the target by 15-20 per cent coupled with water scarcity particularly in Sindh.
"I cannot say what is the latest position of the sugarcane crop regarding drop or increase. The Ministry of Food and Agriculture can give the actual picture," the TCP chairman said.
The international prices of sugar, he said, are now flying high. But any decision regarding the export of sugar may create problems in the local markets right now. He said things would become clear after the actual sugarcane crop size.
TCP has procured the white crystal sugar from the sugar mills at various rates during the last sugarcane season. Pakistan Sugar Mills Association (PSMA) has yet to come out with a clear stance on the future sugarcane production in the 2004-2005 season. The spokesman of the association in Sindh feels that it is too early to predict the situation.
Sugar mills produced more than 4.020 million tons of sugar during 2003-2004 of which 1.221 million tons of sugar were produced by Sindh, 2.599 million tons by Punjab and 176,252 tons by the NWFP.
