The State Bank of Pakistan (SBP) has issued industry-specific procedure by fixing "international commission for uniform mechanism for sugar analysis" (Icumsa) standard at 1,000 for raw sugar import. Sources said the SBP would strictly monitor the import to ensure that raw sugar with less Icumsa will not be imported. The conditionality of 1,000 Icumsa has been put to keep commercial importers away from raw sugar import since it needed refining to make it fit for human consumption.
Raw sugar with less than 1,000 Icumsa standard, is highly impure and contains all kinds of injurious contents, which make the commodity in raw form misfit for human consumption.
Raw sugar, having 1000 Icumsa degree would be refined by the mill-owners and after refining the commodity would be available for sale to the local market.
The degree of whiteness of sugar is judged by its Icumsa degree. The lowest Icumsa means highest whiteness degree. Pakistan's refined sugar has Icumsa degree ranging between 80 to 100 and it is one of the best white refined sugars. Indian commodity has 100 to 150 Icumsa and for this reason its degree of whiteness is low than Pakistan's produce.
Experts said that the SBP has fixed condition of 1,000 Icumsa for raw sugar import to avoid repetition of 1999-2000 bad experience when the standard for raw sugar import was fixed at 600 Icumsa and the commercial importers took advantage and piled-up huge imported raw commodity in the market.
This created glut-like situation and directly hurt the local industry for at least four years.
Pakistan had imported around one million tonnes of sugar in 1999-2000 to plug the gap in its demand and supply. The local industry resisted the move, but its efforts remained abortive. Huge imported commodity resulted in heavy carryover for the next three to four years, which created glut and kept the prices down for at least four years in the open market.
The local industry held policy-makers responsible for making it the hostage to their ill-conceived decision.
The Economic Co-ordination Committee (ECC) of the Cabinet had permitted import of 0.2 million tonnes of sugar to check rising trend in its rates. It directed the SBP to workout mechanism for the import of the commodity.