Price monitoring body for import of 0.4 million tons of sugar

The National Price Monitoring Committee (NPMC) has reportedly recommended to import 0.4 million metric tons of sugar to meet the domestic requirement, following damage of 30 percent sugarcane crop in Sindh province, it is learnt. A meeting of the National Price Monitoring Committee, chaired by Finance Secretary Dr Waqar Masood, took account of the current stock position of sugar and observed that sufficient stock is available till the end of December 2011.
However, in view of damage to the sugarcane crop in Sindh, the meeting stressed that a decision be taken to timely import sugar to cater to the strategic reserves and Utility Store Corporation's requirement. Sources said that based on estimates of Sugar Advisory Board, the meeting decided that import of around 0.4 million tons sugar is required for the current fiscal year. An official said that final decision to this respect would be taken by the Economic Coordination Committee (ECC) of Cabinet, and proposal to this effect would be submitted after preparation.
Another official privy to the meeting quoted Secretary Finance expressing concern over rising trend in sugar and tea prices in the country. Sources said that the meeting also discussed the impact of import of sugar and other essential commodities on trade balance and how increasing gap could impact foreign exchange reserves with no support available from the lending body.
According to a statement, the meeting, attended by representatives from the provinces of Punjab, Sindh, Khyber Pakhthunkhwa, Balochistan, and Ministries of Planning and Development, Industries, Federal Bureau of Statistics and Competition Commission of Pakistan, reviewed the price trend of essential food items, particularly in respect of the situation developed due to floods and rains.
The meeting noted that with the end of Ramazan and Eid season, prices of daily use items had declined and Sensitive Price Indicator (SPI) for the week ended on 18th September, 2011 declined by 0.11 percent. This decline was observed since June 2011. Out of 53 items, prices of 11 items increased while prices of 13 items decreased and that of 20 items remained unchanged.
The committee monitored the price situation arising out of the damage caused by recent floods and rains in Sindh and examined the possibility to import items of daily use from neighbouring countries. It was observed that in grain commodity, prices of wheat, wheat flour, rice and gram are lower as compared to India (New Delhi), Bangladesh (Dhaka), Sri Lanka (Colombo) and Afghanistan (Kabul), while in poultry commodity prices of mutton, beef and chicken are lower in Pakistan, and in vegetable commodity, prices of onion and garlic are lower, whereas, other items the price increase is very nominal.
The international food and fuel prices were also examined and noted that year-on-year basis in August there was increase in prices of wheat, crude oil, palm oil, sugar, tea, rice and DAP etc, but on month to month basis there was decline in the prices of these commodities which may bring some relief in the domestic prices.
The impact of the recent floods and rains on the prices in the provinces was discussed. It was stated by the representative of KPK that there was no major impact on prices in that province which was also endorsed by the representative of Punjab and Balochistan. However, the likely impact cannot be ignored once the supply from upcountry would start to cater the needs of Sindh. Some sensitive commodities such as red chilies, tomatoes and onions are grown in good quantities in Sindh and their impact on prices may come in coming weeks.