August 30, 2007	Thursday	Sha’aban 16, 1428

LAHORE, Aug 29: The ex-mill rate of local sugar slipped further to Rs27.40 per kg from Rs27.60 a couple of days ago on reports that the PCSIR has cleared samples of imported Indian product as “fit for human consumption”.

“The government has cleared Indian sugar for sale in the domestic market after receiving a report from the Pakistan Council for Scientific and Industrial Research,” importers told a hurriedly called press conference late on Wednesday evening. “The Indian product will be released in the domestic market on Thursday,” said Rana Ayub, chairman, Sugar Dealers and Importers Association.

Traders have, so far, imported 2,400 tons of sweetener from India at a cheaper than local price via Wagha.

Another consignment of 7,500 tons is expected to reach over the next few weeks, according to the traders.

The Indian sugar arriving here last Saturday was held back by the customs in view of allegations that the product contained high sulphur content and was unfit for human consumption. Subsequently, its samples were sent for laboratory tests in accordance with the Pakistan Standards Institute (PSI) standards.

“The customs have cleared the imported sweetener after getting a positive report from the PCSIR,” Rana Ayub said.

The Indian sugar is said to have cost importers Rs26 to Rs26.50 per kg, and is expected to be sold at a cheaper rate than the local product.

Rana Ayub said the imported sugar has already caused prices of domestic product to drop in the market ahead of Ramazan.

The sugar industry, however, maintained that the imported sweetener is injurious to human health.

“The samples sent for testing in Karachi are yet to be cleared,” former provincial chairman of the Pakistan Sugar Mills Association (PSMA) Javed Kayani told this reporter.

He said some speculators have imported cheaper but injurious sugar from India to cover their short-selling.

He said the import of the sweetener will play havoc with the domestic industry and devastate market sentiment, and producers may suffer huge financial losses.