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Sugar export to India starts
KARACHI (April 20
2004): Export of sugar has started from Pakistan
to India by train, it is learnt. According to
sources, Punjab mills have sold some quantity, and
more shipments are expected soon. The commodity is
also going to Afghanistan.
This is one of the reasons that sugar prices have
started going up. Ready delivery has touched the
figure of Rs 17.50 per kg and forward delivery is
booked for Rs 18 per kg. The price had gone up
from Rs 16 per kg.
The other reason of price hike is that the
government had asked Trading Corporation of
Pakistan (TCP) to procure 0.2 million tons from
mill owners. This decision is still awaiting
implementation.
Sources told Business Recorder that the government
is reconsidering its decision whether to buy sugar
or not.
There were two pre-conditions attached to the
purchase of sugar. Firstly, the mill owners would
give undertaking to pay all outstanding dues of
the growers and, secondly, they would start next
seasonal crushing from November 1, 2004. Both
conditions have not yet been met.
Therefore, the TCP is yet to float tenders. The
Chairman of TCP had gone to Islamabad on Monday.
The mill owners had suspended the sale of sugar
for one week. This also led to increase in prices.
The government is now watching the price trend,
which had created trouble for the common consumer,
too. In case all goes well and the TCP floats
tender for the purchase of 0.2 million tons, the
price will go up further.
While terming it as an annual feature, Pakistan
Sugar Mills Association (PSMA) has linked the
increase in sugar prices with end of the crushing
season.
PSMA Punjab Zone, Chairman Javed Kayani on Monday
said that improvement in sugar prices at the end
of the crushing season is a permanent feature
since market makes some adjustment with the
season.
Kayani said commodity prices go up every year by
Rs 0.50 or so and the same phenomenon was
continuing for the current sugar year.
For Pakistan sugar year begins from October when
commodity prices show comparatively better trend.
The beginning of the sugar year- the first week of
November brings commodity prices down.
It may be noted that ex-factory sugar prices are
ranging between Rs 17 and 17.50 these days.
The mill owners are expecting some improvement in
the coming months since internationally, the
commodity production is less than the previous
years.
Pakistan is lucky enough to have bumper crops this
year too when all its neighbouring countries have
remained short of production.
Upward trend in sugar prices is expected once
season gets over in all the sugar producing
countries.
Sugar industry in Pakistan is facing tough time
for the last several years due to the surplus
production at home and shrinking prices of the
commodity in the international market. But now
when prices are showing upward trend the situation
is changing for Pakistan altogether.
International market is ranging between $230 - 235
per ton and it is a great hope for local
industrialists. They believe that commodity prices
will improve to end their travail, continuing
since 1999-2000, when 0.6 million tons commodity
was imported from India, although shortfall in
domestic production was merely 0.150 million tons.
Courtesy Business Recorder
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Pakissan.com; Advisory Point
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