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TCP eyes sugar export to India
KARACHI, April 27: The
Trading Corporation of Pakistan (TCP) is eying
export of crystal white sugar to India in the wake
of reports of the commodity’s shortage in the
neighbouring country.
"Prices of refined sugar are soaring in the
international market and there are news of a
shortage of sugar in India, which provides an
opportunity for the export of the commodity lying
with the corporation," Masood Alam Rizvi, Chairman
TCP told The News.
The Corporation has stocks of around 200,000
tonnes of sugar, which it had procured from the
mills during the last crushing season (November
2003 to February 2004) in a rescue operation to
save the sugar industry from collapse.
The sugar industry was in a crisis due to low
prices in the local market, which fell well below
the cost of production.
The TCP had purchased sugar from the mills at an
average price of Rs14,882 per tonne.
"It is right time to sell the stock as the
international market is going upward," Rizvi said.
He estimated that the losses would be minimal by
exporting the commodity to India. The procurement
price of TCP was around $255 per tonne and after
including stevedoring charges, transportation from
the mills to the port, etc, the cost would come to
around $280 per tonne, he added.
In case of export to India, he said, the
transportation cost would be very low, giving an
edge to the corporation. It would also benefit the
importing country, India as it would get sugar at
comparatively low rates, he added.
Rizvi said the TCP had submitted the export plan
to the Ministry of Commerce, which was expected to
be approved in the next meeting of the Economic
Coordination Committee (ECC).
"At present, a major sugar exporter - Brazil - is
not in the market and we want to get the advantage
of boom in the international market," he said.
He said that if the ECC gave the green signal, the
corporation would start shipment by the end of
next month.
At present, all stocks of sugar purchased by TCP
were lying with the mills under the supervision of
TCP representatives. As per contract, mills are
bound to provide the stock as per the requirement
of the corporation from the new crop.
Earlier, the federal government had restricted TCP
from the export of sugar due to depressed prices
in the international market.
There was ample room for the corporation to export
the commodity in small consignments to
Afghanistan. But the government did not allow the
corporation to enter the Afghan market on the plea
that it would hurt commercial exporters.
Millers had already been selling the commodity to
Afghanistan and with the entry of TCP in the
market, a price war was feared. "That’s why, the
Ministry of Commerce strictly prohibited the
corporation from entering the Afghan market," he
said.
There were also apprehensions of smuggling of the
commodity back to Pakistan from Afghanistan.
It may be mentioned here that the government has
decided another procurement of 200,000 tonnes of
sugar from the mills. For final approval, this
matter is on top of the agenda of the next ECC
meeting.
The News International, Pakistan
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Pakissan.com; Advisory Point
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