Pakistan, whose robust demand keeps the sugar market alive, is set to strike more deals this week, while neighbouring India shows some restraint for the sweetener because of ample stocks. Pakistan has booked more than 200,000 tonnes of raw and refined sugar for February to April shipments and traders said on Wednesday the South Asian country would soon finalise deals to purchase around 120,000 tonnes of white sugar.
"The total import for this year, according to market estimates is around 350,000 to 375,000 tonnes," said Muhammad Nab Balagumwalla, chief executive of Karachi-based Seatrade Pvt Ltd.
"The focus is now on refined sugar imports, and we should expect most of the deals to be in that category," said Balagumwalla, whose firm recently bought 200,000 tonnes of Brazilian raw sugar and 15,000 tonnes of refined sugar.
Pakistan last imported sugar in 2001 and was an exporter in 2003 but declines in domestic production has forced the government to open up its market.
The government has lifted a six-percent levy on imported sugar cargoes and removed a 25 percent import duty on raw and refined sugar to allow traders to import as much as they can.
Pakistan's sugar output may fall to 3.1-3.2 million tonnes in the production year that began in November, from 4.0 million tonnes in the previous year, partly due to poor weather.
Annual sugar consumption is 3.6 million tonnes. India, which also sees a drop in domestic output, is expected to finalise deals by September to import between 900,000 and 1.4 million tonnes of raw sugar.
But for the time being, stocks are ample in the world's largest consumer, and importers also wait for sugar prices to fall to $250 a tonne, including cost and freight, from $260. "India has enough stocks of raw sugar at the moment and there is no rush for fresh import deals," said M Manickam, managing director of Shake Sugar Ltd India is already committed to import around 1.6 million tonnes of raw sugar in the season, which began in October.
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