Pakistan Plans to Import Batches of White Sugar on Free Duty

According to the official from Pakistan Industrial Production Department, to relieve the domestic demand in edible sugar market and stabilize commodity prices, the government decided to import 500,000 tons white sugar from TCP on March 31 and to import 700,000 tons from private enterprises by the end of June, and to further cancel the import duty, 16 percent domestic sales tax and 0.85 percent consumption tax on white sugar imported from private enterprises. The official also revealed that, the government planed to import another 500,000 tons white sugar as the state strategic reserve in the second half year of 2010.

It is said that, the edible sugar supply gap in Pakistan reached 1 million tons, which takes on severe confliction between supply and demand, with the price soaring continuously. From 2008 to 2009, Pakistan produced refined sugar 3.2 million tons, and imported sugar about 225,000 tons. At present, the subsidies from government has raised from 38 rupee per kg. to 45 rupee, while the market price is at 60 rupee.