KARACHI, Nov 19: The country expects to produce around three million tons of white refined sugar during the current season (2005-06) and after adding carryover stocks of around 0.7 million tons a total of about 3.7 million tons would be available.

The monthly domestic consumption on an average stands at around 0.3 million tons and this would mean that there would be no shortage during the current season and the total available stock of the commodity would barely meet its demand.

However, sugar prices in the open market are on the higher side, which indicates that the demand and supply situation is still tight. Some analysts say the import of the commodity at higher prices is the main reason for the surge in prices. Presently local sugar is available in the range of Rs25 to Rs26 per kg while imported sugar from Rs26 to Rs28 per kg.

The crushing season in Sindh has yet to pick up momentum. Two millers who heated their boilers could not get sufficient quantity of sugarcane while some millers were still operating on imported raw sugar.

Abdul Wajid, chairman Pakistan Sugar Mills Association (PSMA), told Dawn that since the cane crop had not matured, the mills in the province may start their operations from next week. He said that four mills which started their boilers from November 11, 2005 in the upper Sindh were facing cane supply problem.

He further said that growers were also holding back their stocks in the hope to fetch higher prices and the mills in Punjab would heat up their boilers by November 25. Mr Wajid said that Sindh would produce around 0.825 million tons of white refined sugar during the current season and Punjab around 2.2 million tons. He apprehended that Sindh may produce lesser sugar by 10 per cent owing to poor cane crop.

The PSMA chief said that the country would easily see the current season through but added that the next season a shortage of the commodity would be felt because no carryover stocks would be available.

However, market sources believed that presently around 0.5 million tons of white refined sugar were available and due to irrigation water shortage the new cane crop would also not be that encouraging.