One million tons sugar shortage seen next year

The government has projected one million tons sugar shortfall during the next year, after receiving reports from the provinces that there was no substantial increase in sugarcane cultivation area, official sources told Business Recorder.
"We have estimated nearly one million tons sugar shortage in 2007 as the provincial governments have informed that there has been no change in sugarcane cultivation area," sources said.
They said the Trading Corporation of Pakistan (TCP) has awarded tenders for 0.815 tons of sugar so far, half of which would be imported by December this tear, which would be enough to meet the requirements for the current year. However, they added that TCP has been barred from floating new tenders for sugar import this year.
They said that $962,712,587 has been spent on import of 23,89,806 tons refined sugar from January 18, 2005 to May 27, 2006, of which 11,70,426 tons has arrived so far. According to sources, 186,345, 888 tons raw sugar import cost $8,70,348, of which 613, 152 tons has already arrived in the country.
Asked about likelihood of floating new tenders for sugar import, sources said that decision to this effect could be taken by the end of December or early January. An official said that sugarcane cultivation was slightly above last year's crop mainly because of good return ie Rs 70-80 per 40 kg.
However, he added that better yield would depend on water availability and protection from diseases. "If all goes well as per the projections, sugarcane production will be better than last year's target of 50 million tons, but even then the production will not be sufficient to meet the requirements," he said.
He said that the Prices Review Committee, headed by Dr Salman Shah, had decided that sugar situation would be reviewed on monthly basis. However, the Economic Co-ordination Committee (ECC) of the Cabinet would continue to review prices of essential commodities. Sources said that investigation against the sugar 'Mafia' was also under process and now the Central Board of Revenue (CBR) was verifying sales tax invoices.
Another official said that the Commerce Ministry has communicated the next year's projections to the concerned quarters to avoid any controversy that could raise questions over its efficiency in dealing with sugar crisis.