The sugar millers have asked the government to import 800,000 of raw sugar to avoid serious sugar crisis as the expected sugarcane crop would further reduce by 10 percent in the coming crushing season.
The millers have asked the Ministry of Industries and Production (MoIP) to import 800,000 tons more raw sugar beside 300,000 tons of unprocessed sugar to overcome current sugar crisis due to constant decline in sugarcane production across the country, sources in Pakistan Sugar Mills Association (PSMA) told Business Recorder on Tuesday.
"The millers also warned the government to import raw sugar before start of crushing season 2009-10, as delay may cause an abrupt increase in raw sugar prices in the international market," sources said, adding that if the government failed to import required quantity of the commodity, the prices of sugar would increase further in the market due to record decrease in sugarcane production around the globe.
Sources said the country is likely to face gap in supply and demand, as its production during 2009-10 would stand at 3.2 million tons with decrease of 10 percent against the demand of 4 million tons in a year. During 2007-08 a record 4.7 million tons of sugarcane was produced in the country, out of which the Sindh province contributed 1.56 million tons, sources said, adding that the country's sugar output in the fiscal year 2008-09 reduced to 3.7 million tons in 2008-09 crushing season with reduction of 40 percent.
The millers in a meeting informed the MoIP that an upward trend in the cost of production for white refined sugar attributed by a rapid increase in fuel and fertiliser prices that would lead to swell prices of the essential kitchen item.
"Rise in the cost of production would ultimately trickle down to the inflation-hit masses," they added. Talking to Business Recorder, Abdul Wajid, Chairman of PSMA Sindh-Circle, said the millers had advised the government regarding import of raw last year but it paid no heed to them, which led to sugar crisis in the country.
"This year again, the millers asked for raw sugar import to support the crises hit masses and declining sugar industry," Wajid said. He said the Trading Corporation of Pakistan (TCP) had already released its buffer stock and it needs stock of 600,000 tons of white refined sugar for the year 2010 to maintain equilibrium between supply and demand in the market.
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