The Economic Co-ordination Committee (ECC) of the Cabinet has decided not to import sugar at this juncture as sufficient quantity of sugar is available in the country to meet domestic demand, sources close to Secretary, Industries told Business Recorder.
The ECC, in its meeting on February 1, 2011, under the chairmanship of Finance Minister Dr Abdul Hafeez Shakih, directed the Ministry of Industries and Production (MoI&P) to update the ECC, on fortnightly basis, on sugar situation in the country, ensuring that sufficient stocks are available in the coming months, particularly during Ramazan and Eid.
Official documents show that the ECC in its meeting held on January 13, 2011 had directed the MoI&P to review imported sugar stocks' position at the earliest and devise a mechanism for disposal and bring it before the committee in its next meeting for an appropriate decision.
According to the documents, domestic sugar production figures as on January 22, 2011, stood at 1,283,922 tons. Total domestic stocks including 16,482 tons of old stocks stood at 1,300,404 tons. From this quantity an offtake of 484,054 tons has taken place, leaving balance stocks of 816,350 tons. Total sugar imported by TCP for 2009-10 was 1,100,000 tons, out of which 1,0 80,618 tons has arrived and 19,382 tons is in the pipeline. The balance sugar stocks with TCP on January 18, 2011, was 439,547 tons. This balance of imported sugar includes, 134,424 tons yet to be lifted by provinces of the 300,000 tons allocated to them (Ramazan 100,000 tons and the November 2010 allocation of 200,000 tons by Council of Common Interests (CCI)).
The MoI&P says that the actual available quantity of imported sugar for disposal with TCP is 305,123 tons. The monthly sugar sale of USC is 40,000 to 50,000 tons. Thus, imported sugar stock balance with TCP will be sufficient for seven months' intervention by USC including during estimated Ramazan 2011 intervention of 60,000 to 80,000 tons. The ECC, in its meeting on September 21, 2010 while ousting TCP from sugar import business, had decided that sugar imports would be through the private sector.
According to State Bank of Pakistan (SBP) report of January 10, 2011, Letters of Credit (LCs) for 153,344 tons have been opened, of which 83,124 tons is for white sugar while 70,220 tons is for raw sugar. Of this entire quantity imported by private sector 106,000 tons has arrived--white 61,000 tons and raw 45,000 tons.
The MoI&P said that sugar production in 2010-11 season has been estimated at 3.46 million tons, leaving a gap of approximately 0.8 million tons between production and projected consumption of 4.25 million tons. The ministerial committee in its meeting of November 11, 2010 had also decided that 0.7 million tons of strategic reserves would be built.
ECC decision of September 21, 2010 was referred wherein it was decided that sugar imports would be through the private sector. According to the State Bank of Pakistan report of January 10, 2011 Letters of Credit (LCs) for 1,53,334 tons had been opened of which 83, 124 tons was white sugar while 70,000 tons was raw.
Of this entire quantity imported by the private sector, 1,06,000 tons has arrived ie white 61,000 tons and raw 45,000 tons. Chairman of Pakistan Sugar Mills Association(PSMA), Javed Kayani, says that sugar production will be around 3.7 to 3.8 million tons, whereas TCP's stock is about 0.5 million tons, which implies that there is no need for sugar import at this stage.
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