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Pak millers seek extended ban on Indian sugar

Pakistan's sugar millers on Thursday stepped up pressure on the government to keep a ban on imports from India.

"We have asked the government that the ban should continue on import of rebated Indian sugar as the industry fears a possible lifting of the ban," Khadim Ali Qazilbash, a spokesman for the Pakistan Sugar Mills Association, said.

Pakistan initially estimated a sugar shortfall of one million tonnes in the current season, and last August allowed for the import of 600,000 tonnes from India.

In March Islamabad re-imposed a ban on the import of Indian sugar, a move in line with demands from the local industry, which said cheap Indian sugar had hurt the industry and cane growers.

Qazilbash said the industry was currently responding to reports that India was seeking a removal of the ban on imports during summit talks scheduled for next month.

"There is no need to import more sugar as the stocks were over and above the needs of the country for the rest of the season," Qazilbash said.

He said the PSMA had estimated that the country had a surplus of 298,780 tonnes of sugar until November 2001.

Pakistan's annual processed sugar demand is around 3.3 million tonnes, but according to government estimates production is expected at two million tonnes in 2001-02 because of 4.9 per cent decline in the cane area.

Drought impact

Pakistan's central bank said in a quarterly report issued in May said that a sever water shortage, which had delayed the sowing of all major crops, had resulted in a cutback in sugar area, production and yields.

"The preliminary estimates showed the sugarcane cultivation area dropping 4.9 per cent to 961,000 hectares, production 15.3 per cent to 43.72 million tonnes and yield 11.9 per cent to 45,595 kg per hectare," the central bank report said.

A mill owner in Karachi said 600,000 tonnes of raw sugar, which was refined by the mills, and 550,000 tonnes of white sugar had been imported since August.

Qazilbash said the industry had asked the government to raise import duty on sugar to 30 per cent.

Pakistan, in its annual budget for 2001-02 announced last week, reduced import duty on refined white sugar to 10 per cent from 15 per cent, inclusive of a statutory five percent exemption, effective July 1.

The PSMA said in a statement issued on Thursday that 2000-01 (July-June) sugar production had reached 3.678 million tonnes by June 15.

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