09 February 2005	Wednesday	29 Zilhaj 1425

LONDON/NEW YORK, Feb 8: Pakistani authorities will tender to buy 150,000 tons of duty-free refined sugar and are scouting to import about 50,000 tons of raw sugar, US and European trade sources said on Tuesday.

The state-run Trading Corporation of Pakistan (TCP) would announce the refined sugar tender via the domestic press, trade sources told Reuters.

"It is confirmed that only TCP is allowed to import refined sugar duty free, and the quantity is 150,000 tons," a trade source said, adding that the decision was taken this week at a meeting of the government's Economic Coordination Committee.

Another trade source also confirmed Pakistani authorities would import 150,000 tons of white sugar duty free, in a move aimed at checking a rise in domestic sugar prices.

The Pakistan news lifted LIFFE white sugar futures in London and raw sugar futures on NYBOT in New York, trade sources said.

LIFFE March sugar was up $1.50 at 264.50 a ton at 1656 GMT, and NYBOT March was up 0.10 cents a lb at 9.03.

Trade sources said the refined sugar tender was expected to be for prompt delivery.

Pakistan's current harvest has been damaged by dry weather, trade sources said.

Pakistanis are making enquiries to buy around 50,000 tons of raw sugar, and have booked around 200,000 tons of raw sugar out of planned imports of 250,000 tons of raw sugar, according to trade sources contacted by Reuters in London and New York.

Last week Pakistan announced a plan to import one million tons of white sugar to cover supply shortages and check rising domestic prices, but trade sources believe Pakistan's needs will be far below that level.

The decision to import sugar was taken at a meeting chaired by Prime Minister Shaukat Aziz last Thursday, and the imports would be on top of plans announced last month to import 250,000 tons of raw sugar.

Pakistan last imported sugar in 2001 and was an exporter in 2003.

"We're seeing mostly rolling, but the news from Pakistan cannot hurt," a trading house broker in the United States said, adding the trade and speculative buying which has come into the market may be linked to the cash news from south Asia.

A LIFFE white sugar futures trader said: "The Pakistan news is helping to lift the market. We have seen speculative buying, as well as rolling."

Pakistani analysts say millers are concerned that imports will hit their profits by reducing domestic prices, which surged to a three-and-half-year high of Rs28/kg on February 1.

Pakistan's sugar production is expected to dip in the production year from November to 3.3-3.4 million tons from 4.0 million in the previous production year.

Annual sugar consumption is 3.6 million tons. The cane crop has fallen to 47.3 million tons this year due to low rainfall and the loss of land to cotton. Last year Pakistan produced 52 million tons of cane.-Reuters