Sugar Advisory Board (SAB) is scheduled to meet here on Monday (today) with Secretary Industries. The board will discuss possible gaps in sugar demand and supply in the country, official sources told Business Recorder.
SAB is represented by the federal and provincial government besides Pakistan Sugar Mills Association (PSMA) which is the key stakeholder.
The sources said, Board would also discuss implication of sugar export or further domestic purchase on current sugar price and availability in the country, in addition to sugar production projection for 2011-12.
When contacted Chairman PSMA Javed Kayani, a high level delegation would accompany him to present the point of view of industry, explained that due to an abrupt disruption in supply of sugarcane in the first week of February the Association deemed it appropriate to caution the government to review the final production figures.
Javed Kayani said by the end February production in Punjab, Sindh and KP is reported as 2.515 million, 1.06 million and 350,000 respectively and by the time sugarcane crushing season comes to an end we envisage a production of 3.1-3.150 million in Punjab, 1.260 million in Sindh and 3750,000 in KP, which makes a total availability of about 4.7 to 4.750 for the current year, with a carry over surplus of 500,000 tons as on 1st of November total quantity for disposal comes to about 5.2 million tons.
Trading Corporation of Pakistan has already bought 478,000 tons and a permission to export 100,000 tons was given by the ECC. He was of the view that after export and TCP purchase there still remains 4.62 million tons sugar. The annual requirement of the country is approximately 4.2 million tons for the entire year, therefore after meeting the domestic requirement there will be a surplus of about 400,000 tons of sugar.
In reply to a question he said that PSMA would strongly propose and recommend to MoI to buy an additional quantity of 400,000 tons through TCP so that sugar remains in the country and government of Pakistan does not have to resort to import for the remaining requirement of strategic reserves. We would also want that the industry is allowed to go ahead with the export of 100,000 tons approved earlier as our members have contracted at about USD 600 per ton on FOB basis. Chairman PSMA said there is no shortage of the commodity; all we have to do is manage the quantity in a very professional manner so that there is no chaos in the country and the consumers do not suffer at all. Any additional quantity purchased by TCP would enable it to intervene in the open market as and when the necessity arises to control the price spiral.