KARACHI, May 19: A meeting to assess the prevailing demand and supply situation of essential commodities, including cement, sugar and pulses, is to be held on Saturday in Islamabad.

Minister of State Umer Asghar Khan, advisers to the prime minister Dr Salman Shah and Dr Ashfaq Hasan and CBR Chairman Abdullah Yusuf will represent the government, while Pakistan Commodity Imports Association (PCIA) Chairman Raees Ashraf Tarmohammad will represent importers in the meeting.

According to market sources, around 101,245 tons of sugar was cleared by the appraisement collectorate and around 50,000 tons by the customs CARe department during the 15 days period (April 1 to 15).

The total quantity of sugar so far imported by the private sector stood at around 475,000 tons, as around 325,000 tons were imported last month (April) and around 150,000 tons during the last fortnight. Besides, the Trading Corporation of Pakistan (TCP) has also imported around 82,000 tons sugar.

Sugar importers told Dawn that during the next 15 days, five chartered vessels would reach Karachi, with 24,000 tons of sugar from China and four vessels each loaded with around 12,500 tons from India. Moreover, around 3,000 to 4,000 tons of sugar was daily arriving through containers. The average booking price for these consignments, the sources said, was around $470 to $480 per ton.

Private sector sugar importers have been asked by the government to import around 0.5 million tons in two months.

Due to improved supplies, sugar prices in the domestic market have started coming down. At present sugar is selling at Rs34-35 per kg as compared to Rs37-38 per kg early last month.

The PCIA chairman said that his team of sugar importers had assured the government of making available sugar at lower than the TCP price. He said the state-owned corporation was importing sugar at around $520 per ton, whereas PCIA members managed to import it at around $500 per ton.

He said the meeting would also discuss ways to bring down prices of pulses, particularly of moong and mash (whole), as both the commodities were in short supply owing to poor crop. Last year, he said the government reduced withholding tax from six per cent to two per cent and withdrew sales tax and customs duty.

Mr Tarmohammad said the importers would suggest the government to bring down withholding tax to 0.5 per cent and would seek a subsidy of $100 per ton on freight and other expenses incurred at the port and customs stage.

“If these recommendations are accepted, it will help bring down prices of pulses by around Rs6,000 per ton and importers will pass on 90 per cent of the benefit to end-consumers.”

He said the importers were confused and perturbed over the rumours that cement manufacturers were exerting pressure for the withdrawal of freight subsidy of Rs60 per ton on cement import. The PCIA chief said the importers had already entered into import contracts of around 300,000 to 400,000 tons of cement, and if the government did not clear the situation it would hurt them.