No trade with India: Sugar is selling at PKR 100 per kg in Pakistan, country issues tender to import 

WION Web Team
NEW DELHI Published: Apr 06, 2021, 02:42 PM(IST)

A laborer unloads sacks of sugar from a supply truck at the main wholesale market in Karachi Photograph:( Reuters )

Story highlights

Faced with production shortages, Pakistan is trying to import sugar to boost domestic availability and check retail prices which have shot up to PKR 100 per kg.      

After the Pakistani government deferred the import of sugar and cotton from India, the Trading Corporation of Pakistan (TCP) has issued a tender for the import of 50,000 tons of white sugar to maintain supply in the domestic market and control the soaring prices of the commodity.

This is a move described by the Indian sugar industry as "bad luck" for the neighbouring country.

This is the third tender Trading Corporation of Pakistan (TCP) has floated for the import of sugar. Earlier, two tenders for 50,000 tonnes each had to be scrapped mainly due to high quotes.        

Faced with production shortages, Pakistan is trying to import sugar to boost domestic availability and check retail prices which have shot up to PKR 100 per kg.      

Last week, there was sudden hope of trade reopening between the two nations in sugar and cotton after Pakistan's Economic Coordination Committee allowed the import of these two commodities from India. However, Pakistan's federal cabinet backtracked on the decision.      

Issuing a fresh international tender for the import of 50,000 tonnes of white sugar, TCP made it clear to global suppliers that "the cargo (white sugar) should not be originated from Israel or any other banned country."      

Global suppliers should submit bids by April 14 and deliver the commodity at any port in Karachi, it said.

Commenting on the development, All India Sugar Trade Association (AISTA) Chairman Praful Vithalani said, "Bad luck for Pakistan. Will you get sugar at prices, quality and speed with the lowest freight parity of Indian sugar?"

For Pakistan, importing white sugar from India would have been much cheaper and faster via land route compared to other countries, he told PTI.  

"Through land route via Punjab, white sugar would cost about USD 398 per tonne (which includes freight charges and delivery at godown)," he added.      

According to AISTA, TCP had scrapped earlier two tenders for the import of sugar because of high quotes. The lowest bid it received was around USD 540 per tonne by Al Khaleez, Dubai.      

Pakistan, which is expecting sugar production of 5.6 million tonnes in the ongoing 2020-21 marketing year (October-September), is facing a shortage of 5,00,000 tonnes, according to Pakistani traders    

Whereas India, the world's second-largest sugar-producing nation after Brazil, is sitting on a surplus stock and targeting to export 6 million tonnes in the ongoing 2020-21 marketing year. 

(With inputs from agencies)

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