KARACHI, April 15: The reports about shortage of sugar in India have created a bright opportunity for Pakistan to export its surplus sugar to the neighbouring country, industry sources said here on Thursday.

"Confirmed reports are coming from India that the country will face a shortage of sugar because of deficit in the crop this year," says a sugar mill owner on the condition of anonymity.

The sources said the Trading Corporation of Pakistan had purchased 200,000 tons sugar from the mills for export purposes or maintaining a buffer stock. In addition, sugar mills also have exportable surplus, they added.

The information indicates that sugar prices are rising in India. "The TCP can capitalize this opportunity and export its stocked sugar to get a good price," they observed. A TCP official said that so far the corporation had not received any instructions from the government to export stocked sugar.

A sugar trader said international sugar prices were rising and it was a good time to export sugar to fetch better prices. "There are chances that sugar price may fall when sugar from Brazil would hit the market in two months' time."

The trader pointed out that sugar prices were currently staying in the range of $224 to $225 per ton. He said Pakistan was exporting sugar to Afghanistan at $260 per ton. He said that shipment cost could be reduced if sugar was imported to India.

The trader said India would lower customs duty on sugar next month or two to reduce cost of imported sugar in the country and Pakistan should take the advantage of lower duty.

He said Pakistan and India had in the past exported sugar to each other whenever needed. He pointed out that Pakistan would get a surplus sugar this year too and there was no point of keeping sugar as buffer stock. -APP