Indian sugar to hit shelves in Pakistan

ISLAMABAD: Indian sugar is all set to hit the Pakistan market in a big way as two consignments of 12,000 tonne are reaching the country in next two to three days.

The first consignment of 6,000 tonnes is due in Lahore via Wagah border on Thursday and the second of equal quantity in Karachi before the end of the current week. Indian sugar influx into Pakistan seems increasing, Pakistan’s Business Recorder newspaper on Wednesday quoted officials as saying.

Pakistani sugar importers are in a race to secure their deals with Indian sugar exporters, it said. Total volume of the orders booked from India for sugar import can be judged from the first few consignments, which are going to add roughly 50,000 tonne in the local market by August 31.

Uninterrupted sugar import from India indicates that 25% duty is not enough to discourage influx of subsidised Indian sugar. The land route via Wagah makes Pakistan’s market an attraction to the Indian exporters, the newspaper said.

India has around one million tonne surplus sugar. Pakistani importers are buying sugar from India at $285 per tonne and its cost at Karachi and Lahore is roughly between Rs 25.50 and Rs 26 against Rs 28 per kg at local market rates.

A difference of Rs 2 per kg is enough to bait the Pakistani importers. They rushed to Indian businessmen as soon as the sugar prices in the local market crossed a break-even level, the report said.

The newspaper quoted the Pakistan Sugar Mills Association, however, as criticising the Indian imports saying that the “destruction” of local sugar industry would mean destruction of a whole chain including the growers, a large number of people who earn their living during the crushing season.