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Adequate supplies of sugar
available: TCP
By Parvaiz Ishfaq Rana
The Trading Corporation of Pakistan (TCP) has sufficient
sugar stocks to meet Ramazan demand and has already issued
orders for release of 50,000 tons of sugar to Utility Stores
Corporation from its total stocks of 166,000 tons lying with
different mills throughout the country.
This was stated by TCP chairman Saeed Ahmed Khan at a news
briefing in his office on Wednesday.
He further said that the corporation would like to see that
the balance of 100,000 tons reaches the USC before Ramazan so
that sugar shortage is not created in the holy month.
The TCP is also holding stocks of 75,000 tons imported sugar
and expects another 50,000 tons to reach Karachi by the end of
this month which would take total stocks of imported sugar to
125,000 tons.
He said early this year the government had asked the TCP to
import around 200,000 tons of sugar in anticipation of
shortage.
Consequently, the corporation has already imported around
125,000 tons and for the balance of 75,000 tons, the Economic
Coordination Committee (ECC) has directed the TCP to issue
import tender on Aug 31.
There is no delay in release of sugar or holding back of
stocks by the TCP, Saeed Ahmed Khan said and maintained that
the corporation has to work on government directives for
import of any commodity and maintain reserve stocks to meet
shortages from time to time.
The TCP chairman said that an attempt to bring down sugar
prices in the open market by offering 10,000 tons, out of
imported sugar, failed because the corporation received high
bids of up to Rs45200 per ton which could not have influenced
prices.
Therefore, he said the government directed the corporation to
cancel the bid and hold back stocks. The ECC has allowed
import of 300,000 tons raw sugar but prices in the world
market are still high.
Mr Khan said that New York market prices for raw sugar are at
around $481 per ton and London market prices for white sugar
are at around $542 per ton.
Responding to a question, he said that the main reason for
high sugar prices in the world market are huge Indian demand
of around five million tons of sugar.
He said that late monsoon rains resulted in short cane crop.
India being largest consumer of sugar, he said, on average
gets 24 million tons of sugar production, but this season it
only produced 16 million tons. Similarly, he said Brazil which
is the largest producer of sugar had a bad cane crop owing to
heavy rains.
On average, he said, 300,000 tons of sugar is consumed per
month and the TCP is ready to give the USC 100,000 tons per
month which would mean that one-third of domestic sugar demand
would be met by the corporation.
To another question, Mr Khan said that imported sugar would
cost Rs55 per kg or Rs44,000 per ton to the corporation after
including all costs.
Since the TCP staggered its sugar imports the first shipment
in February was quoted at $474 per ton while second shipment
in April received at $474 per ton and third in June was quoted
at $494 per ton.
Courtesy:
The DAWN
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Pakissan.com;
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