Sugar price is expected to skyrocket to about Rs 90 per kg in the coming weeks as stocks with sugar mills are inadequate, said a market player on Wednesday. Currently, sugar price in Pakistan is higher than in India, Sri Lanka and Bangladesh but lower than Afghanistan. A ministerial committee, headed by the Minister for Industries and Production, Hazar Khan Bijarani, which met last week, did not reach any agreement on a plan to deal with the rising sugar prices.
The main objective of the meeting, as per the mandate given to the committee by the ECC, was to ascertain the latest stocks position for the current and the next season; determine the feasibility of raw sugar import in consultation with the sugar mills; and lastly to suggest measures to involve the private sector in sugar import.
The key decision taken by the meeting was to keep the TCP away from sugar business from next year. Those TCP officials who remained involved in pocketing money, except the Chairman, are disappointed with this decision, that is backed by the Deputy Chairman of the Planning Commission. When contacted, PSMA Chairman Iskandar Khan confirmed that sugar stocks information received from the Ministry of Industries and Production shows that the situation is not satisfactory.
He said that PSMA had proposed to the government to import raw sugar to crush in November. The government can save $240 per ton which could be spent on flood affectees. According to TCP, of 5,75,000 tons contracted sugar 3,49,188 tons has reached the country. Further, 81,000 tons will arrive in August and 74,000 tons would arrive in September, while 30,000 tons would reach here in October and November. Sources said that the Planning Commission is of the view that events of the last many days had changed the ground realities and demanded reassessment of government''s priorities.
He said that the market should be allowed to work freely and be trusted to meet the shortage. According to official statement, issued after the meeting of inter-ministerial meeting last week, raw sugar could either be imported at the beginning or at the end of the crushing season. The meeting was of the view it was too late to source raw sugar at the beginning of the crushing season since it would take 80 days to import sugar from Brazil.
The best option would be to take a decision in December about the quantum of raw sugar import at the end of the crushing season when effects of floods on sugarcane crop were clearer. The floods have damaged some sugarcane crop while other crops may have greater sucrose recovery so the final sugar yield may stay unaffected. The final decisions relating to raw sugar import will be made in the ECC.
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