The government on Wednesday allowed commercial import of raw sugar through sea and land routes from any country, with the hope that the measure would help catch the upward trend in sugar prices. Commercial importers will be free to import sugar of any acumsa-the standard to measure quality of sugar-and sell it directly into the open market.
The idea can encourage use of raw sugar by the bakeries and beverage industry and cut down consumption of crystal white sugar.
The government had allowed the mill owners to import raw sugar basically for refining to supplement supply in the open market but the facility was grossly misused.
Rising sugar prices dominated during the meeting which was basically convened by the government to discuss ways and means with the importers for early import of essential items such as sugar, onion, meat, livestock, flour and potato.
Adviser to prime minister on Finance Dr Salman Shah, State Minister for Finance Omer Ayub Khan and Dr Ashfaque Hasan Khan represented the government during the meeting. The importers'' delegation included Ashraf Tar Mohammad, chairman of Pakistan Commodity Importers Association (PCIA), Aamer Waheed, Zulfiqar Ali, Aslam Tazbih and Abdul Rauf Chappal.
Talking to Business Recorder after the meeting, Tar Mohammad said the official side heard their point of view patiently and assured the delegation that the government''s import policy would remain unchanged so that importers do not suffer any loss on their shipments.
Zulfiqar said that commercial import of raw sugar would finally bring sugar rates down in due course of time.
Aamer Waheed drew the attention of the official team towards misuse of buffer sugar stocks at some outlets of Utility Stores Corporation (USC). He said that some USC outlets were selling sugar in bulk in violation of government guidelines. He demanded probe into the case.
The delegation demanded reduction in withholding tax from 6 percent to 2 percent on import of pulses. It also informed the government that importers were feeling difficulty in meeting the requirements of quarantine on import of livestock. The delegation suggested acceptance of pre-shipment examination at the port of origin of imported livestock.
The official team assured the delegation that the government would take all possible steps to encourage the private sector for importing essential items, and its demands would be taken up to the Economic Co-ordination Committee (ECC) of the Cabinet.
Ashraf said: "We have been assured that our demand of reduction in withholding tax on import of pulses would be taken up with the ECC, as it was the proper forum to decide downward or upward revision in duties and taxes."
Karachi correspondent adds: Ashraf Tar Mohammad said on telephone from Islamabad that a number of recommendations were discussed in the meeting to stabilise essential items'' prices and to improve their availability in the local markets.
He said that it was also decided that livestock import would be allowed following health certification from five highly reputed international surveyor companies.
Tar Mohammad said that the country has sufficient stock of black gram, adding: "Rather some of the members of our association have exported the commodity." During the current fiscal year nearly 0.5 million tonnes of black gram was exported to neighbouring India, he said.
Zulfiqar Ali, in his comments, said that at present the international prices of raw sugar is ranging from $200 to $210 per tonne. "After analysing the current status of sugar crop in the country, we foresee a shortfall of 800,000 to one million tonnes of sugar in the coming season."
He said that the prices of white sugar at London Commodity Market had increased by almost 4 dollars to $335 per tonne on Wednesday while the prices in the Middle East markets rose to $350 per tonne.
Comments
Comments are closed.