The finance ministry has sought approval from the Economic Coordination Committee (ECC) of the Cabinet for import of sugar by the public sector to improve supply situation and arrest upward trend in its prices. The ECC is meeting here on Friday to take up various important items on its agenda.
Sugar, wheat flour (atta), prices of other essential kitchen items and their demand/supply situation is on the agenda of the meeting to be chaired by Prime Minister Shaukat Aziz.
Sources said the finance ministry in its summary sought permission from the ECC for immediate import of sugar by public sector departments. It preferred the Trading Corporation of Pakistan (TCP) for the job as it has better understanding about the international market.
Talking to Business Recorder on Thursday an official said: "We have submitted a summary to the ECC for its Friday meeting to seek permission for sugar import, immediately."
The ministry also suggested the ECC to allow downloading of buffer stocks of sugar available with the TCP through open tenders as an immediate measure to check rising prices of sugar in the open market.
The TCP has around 350,000 tons buffer stock of sugar and its downloading in the open market through open tender could help the government bring prices down considerably.
Rising sugar prices have posed a serious challenge to the government. Though, it took various measures to improve the situation and protect consumers from high prices, none of them worked to its expectations.
Now, the government has left with only one option: import of sugar through some public sector department. Authorities are confident that if the ECC approves the summary for sugar import, it will go its way to check artificial shortage and bring prices down considerably.
Sugar prices are on the rise right from the peak period of crushing season 2004-05. The price of 1kg of sugar has gone up by Rs5 during the last few days.
According to market sources, mill-owners sold sugar at Rs27 and Rs27.50 per kg on Thursday that took rates to Rs30 in the retail market.
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