The recent smuggling of 0.4 million tones of locally produced white refined sugar to Afghanistan cost the government of Pakistan around Rs 32 billion. To overcome shortfall of 0.4 million tones sugar being smuggled to Afghanistan, Economic Co-ordination Committee (ECC) implied Trading Corporation of Pakistan (TCP) and local traders to import sugar from other sugar producing countries, an official source at Pakistan Sugar Mills Association told Business Recorder on Friday.
He said that import process of white refined sugar just started in the country while the authorities concerned has decided to import sugar from Thailand, which is producing standard quality sugar. "Due to open smuggling of sugar from Pakistan to Afghanistan, the country facing shortage otherwise current year's production is enough to cater the need of Pakistan," he said.
He apprised smuggling of white refined sugar to the neighbouring countries, is not a new function as these incidents were also witnessed in past regularly. He said that despite strict security arrangement, the government could not overcome this menace due to which sugar retail prices in the country increasing regularly.
He said the country escapes from severe sugar crises due to tension between two neighbouring countries, Pakistan and India, on borders due to which a large amount of white refined sugar was saved in the country. He was of the view if government keeps vigil eye on movement of sugar at inter-provincial level, there is a possibility that country never face sugar crises.
To a question, sugar industry is facing uncertain situation due to unstable white refined sugar at international markets place because of this sugar price also remained unstable in Pakistan. He said it is expected that sugar prices at international markets would remain same but if price of white refined sugar increased internationally, there is possibility of further increase in sugar prices.
He was of the view if the government like to provide relief to the masses of the country and local sugar industry in current crises, it should remove 16pc General Sales Tax (GST) on the production of white refined sugar. If government lift 16pc GST on sugar for giving subsidy, then it is possible to lower retail sugar prices from Rs 42 per kg to Rs 37 per kg, he said.
He said,"Sugarcane production is likely to fall by 10 percent next season, as the growers are intending to opt for other crops due to an unnecessary delay in the government's announcement of support price for their output." He explained that the growers of Sindh are waiting for federal government announcement regarding support price on 40kg sugarcane as it announces support price to decide for changing production trend for next cultivation season from sugarcane to other crops to earn more in short time.
He said this year sucrose production likely to reduce up to 40pc with maximum production of 3.5 million tonnes in fiscal year 2008-09, which would reduce up to 10 percent and it is expected the sugarcane production would remain 3.2 million tonnes in next cultivation season.
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