April 30, 2006	Sunday	Rabi-us-Sani 1, 1427

KARACHI, April 29: Around 0.376 million tons of imported sugar including 64,000 tons bought by the Trading Corporation of Pakistan (TCP) reached Karachi during the current month.

As a result of improved supplies the wholesale prices of the commodity in the local market came down to Rs35.50-Rs36.50 per kg from Rs40-Rs42 per kg, sources told Dawn on Saturday.

Monthly sugar consumption is estimated at around 0.325 million tons and new crop season is about eight months away and to see the season through the country will be requiring around 2.5 million tons of the commodity.

President Pervez Musharraf in a recent meeting with sugar stakeholders asked the importers to bring in around 0.5 million tons of sugar in two months and also directed the TCP to maintain buffer stocks equivalent to two months’ demand.

After the meeting the importers and the TCP immediately entered into larger import deals (0.3m-0.4m tons) from Gulf, Europe, Brazil, China and particularly Indian exporters, but due to sudden rise of $60-80 per ton in world sugar prices at the end of last month many exporters backed out and stopped supplies to Pakistani importers.

During January-February 2006 the import of the commodity remained slow as crushing was still going on in the mills and importers were reluctant to take any risk fearing massive fluctuation in prices on the domestic market. However, in March around 0.250 million tons were imported and up to April 27, 2006, a total of 0.376m tons, including 64,000 tons by TCP were imported.

All Pakistan Commodity Importers Association President Raees Ashraf Tarmohammad told Dawn that importers were now booking their sugar consignments at $480-$500 per ton, which brings their landed cost to Rs35.50 to Rs36 per kg.

The TCP had floated seven tenders for import of around 0.350 million tons and out of this 64,000 tons of white refined sugar had already arrived at Karachi port. The official figures released by the sugar mills up to March 31, 2006 indicated that around 1.6 million tons were still lying with the millers. However, after deducting around 0.2 million tons released or consumed during last month the mills were still holding around 0.14 million tons.

Taking stocks of the entire situation the country would be having sufficient stocks to meet domestic demand because the deals finalised by both the importers and the TCP would ensure continuous arrival of imported sugar during months to come. This will not only help meet the next eight months demand but may also create buffer stocks of around 0.5 million tons with the TCP.

The government had also enhanced sugar supplied to Utility Stores Corporation (USC) from 20,000 tons to 30,000 tons per month at controlled rate to ease the pressure on common man.

Furthermore, the government had also directed millers to give 10 per cent of their total production to government on subsidise rates which would be released to common man. This was already going on in India where mills were giving 15 per cent of their entire production to government on subsidised rates.