ISLAMABAD: Prime Minister Imran Khan has reportedly directed Advisor on Commerce Abdul Razak Dawood to ensure early import of wheat and sugar through Trading Corporation of Pakistan (TCP) aimed at stabilizing prices of both commodities in the domestic market, well informed sources in Commerce Ministry told Business Recorder.

The country is facing shortage of wheat due to which price of flour has risen in the market whereas sugar price is around Rs 100 per kg.

On July 2, 2020 the government decided to initially allow private importers to import 500,000 tons of wheat by giving various concessions in duties due to higher price of the commodity in the international market.

The sources said private buyers booked more than 400,000 MTs of wheat at a price between $ 219.00 to $ 240.00 per MT Cost and Freight (C&F) Karachi. And on August 7, 2020 the government issued tender for import of 1.5 million tons of wheat through TCP which compromised private importers interest and increased world prices due to such a high tonnage tender.

Some of the stakeholders are of the view that the government should not have announced import through TCP but allowed private traders to import as now it has complicated and discouraged private importers after simultaneous announcement of tender by TCP.

There are reports that the TCP has issued tender documents to suppliers who are already in litigation with TCP for past contracts. There is a suggestion that those suppliers who are in litigation with TCP should not be entertained to participate in the tender.

The sources in Commerce Ministry further stated that the government has also floated tender through TCP for import of 300,000 MTs of sugar to bring its local price down. However, the government has not yet finalized the origin from where sugar will be imported so that the commodity should be cheap and land in Pakistan immediately.

The nearest origins are in order of price ;(i) UAE;(ii) India ;(iii) Thailand and (iv) Brazil and Europe.

UAE and India can supply sugar quickly at lower prices to Pakistan. As

Pakistan may not opt to import sugar from India due to ongoing tension though GoP allowed import from India through issuance of SRO in September for medicines.

The source said, quality of sugar has been revised for consideration in pre bid meeting in TCP. The container delivery cost from port to storage is higher than mentioned in the tender documents.

Another high level meeting in Islamabad discussed import of sugar through the private sector. The private sector has also sought concession in duties to import and supply in the market.

Copyright Business Recorder, 2020