KARACHI, July 9: Sugar importers have urged the government to immediately take such measures that could help the country have sufficient stocks of the commodity during the month of Ramazan. It is strongly felt that the present stocks will only meet the domestic demand up to October.

Pakistan Commodity Importers Association (PCIA) Chairman Raees Ashraf Tarmohammad told Dawn that the importers would hold a meeting on Monday with Dr Salman Shah, Adviser to the Prime Minister on Finance and Economic Affairs.

The importers’ delegation, headed by Mr Tarmohammad, will try to convince the adviser to take measures for averting any crisis of the commodity. The PCIA chief said they would request the government to withdraw sales tax on sugar, ask the TCP to release sugar to all the provinces judiciously and allow the import of sugar from India.

Mr Tarmohammad said these measures would help importers further replenish the stocks so that the current season could be easily through and meet the higher demand for sugar during Ramazan.

He said by withdrawing sales tax on sugar, the prices could be brought down by Rs3.5 to Rs4 per kg. Similarly, he said the import of sugar from India would cut cost, as freight advantage of $20 per ton could be transferred to end consumers.

In the meantime, he said, the TCP should be asked to release sugar from its stocks of 350,000 tons, as this would help ease the pressure on prices and streamline the supply.

There is a plenty of sugar available in the world market but strong regional cartels of traders have cornered these stocks knowing that Pakistan, Afghanistan and Iraq are short of the commodity. He said when-ever importers enter the market these cartels became active and raised the prices.

According to the current stock position, out of 360,000 tons of sugar for which importers had opened letters of credit (L/Cs), around 190,000 tons had already arrived. Mr Tarmohammad expressed the hope that during the next 10 days another 120,000 tons will reach the country. Besides, he said two days back importers had booked 100,000 tons of sugar from China at a rate of $355 per ton.

The PCIA chief said the country would be requiring around 1.3 million tons of sugar up to October, and as per the figures of imported and locally available stocks it would be sufficiently met. But he cautioned that the situation could get worse if the government did not replenish these stocks to meet the rising demand during Ramazan.

During the next two months, he pointed out, the importers would further import around 250,000 tons of sugar. He said the TCP had around 350,000 tons of sugar stock and 550,000 tons are still lying with manufacturers, wholesalers and retailers. “There would be no problem up to October, but this could arise during the month of Ramazan,” he added.