Pakistan not to import sugar despite floods

ISLAMABAD: Pakistan does not need to import sugar this year despite minor losses to its sugarcane crop by floods in the country's south, officials and traders said on Wednesday, with sufficient stocks available to meet domestic demands.

The floods, caused by heavy monsoon rains, have displaced more than 300,000 people and destroyed or damaged crops over 1.7 million acres of land in Sindh, where the cotton crop has been worst hit, with an estimated loss of at least two million bales.

Despite losses to the sugarcane crop, traders and government officials expect a bumper crop of at least 4.5 million tonnes in the year to June 2012, saying Pakistan may not need to import sugar even in the next year.

"There is no need to import sugar this year, import is out of the question," Javed Kayani, chairman of the Pakistan Sugar Mills Association, told Reuters.

"In fact, the rains are a blessing in disguise as they will lead to an increase in sucrose content and better recovery. The next crop could go beyond 4.5 million tonnes."

Pakistan produced 4.1 million tonnes of refined sugar in 2010/11 despite devastating floods in 2010.

A senior official at the country's Ministry of Industries and Production confirmed sufficient stocks were available and that Pakistan did not need to import the sweetener this year.

Total stocks stood at 1.34 million tonnes by September 12, including 211,152 tonnes of sugar imported in 2010.

"If we take the average per month consumption of 350,000 tonnes, this stock is sufficient until mid-January," said the ministry official, who declined to be identified as he is not authorised to speak to the media.

Another ministry official said that even if losses to the sugarcane crop exceeded initial estimates, a decision to import would not be made until February. He too expected a bumper crop and said the country might not need to import at all.

Pakistan's sugar season runs from October to September. New crop output will start pouring on to the market in late November or early December.

Pakistan had to import about 1.2 million tonnes of sugar last year after production fell to 3.1 million tonnes from the 2009/10 crop, when many farmers switched to more profitable crops.

Copyright Reuters, 2011