Sugar import from India: government, mills line up on opposite sides

The federal government and Pakistan Sugar Mills Association (PSMA) are on opposing sides in respect of importing Indian sugar. "Imported sugar from India will be most profitable due to the sharing of common borders and use of land route," said an official. But PSMA Chairman Javed Kayani argues that if Indian sugar is not included in negative list it would be tantamount to promoting Indian sugarcane farmers.
Official circles say that the private sector has been encouraged by the government to import sugar in the current sugar season. The private sector is free to import both raw and white sugar. So far, the private sector has opened LCs for 1,53,000 tons of both white and raw sugar. To facilitate the private sector the import duty of 25 percent from raw sugar has been removed. The import duty on white sugar is already zero.
As such, sugar both white and raw, is freely importable at zero duty from all destinations around the globe. This is true also for India since white/raw sugar figures on the import policy order dated 4th September, 2009, Appendix G in the list of items importable from India, and includes raw cane- and beet-sugar and white crystalline cane- and beet-sugar. Imported sugar from India will be most profitable due to the sharing of common borders and use of land route.
During February, sugarcane sowing takes place and if farmers switch to other cash crops there would be a shortage in the following year, which is what allegedly the importers'' lobby wants. "We are purchasing sugarcane at highest ever prices with a resultant higher cost of production; it is the duty of the government to protect and safeguard the industry through tariff adjustment," he added.
Javed Kayani said that governments should take prudent and pragmatic decisions to safeguard their interests "whereas we are at the mercy of myopic planners who do not take decisions for the good of the country but to promote vested interests and forces who intend to use our soil as a dumping ground". He said that India is re-imposing 60 percent import tax on sugar, which is a rational business decision at this point in time. He added that farmers are the backbone of this country and they need support and protection from the government as circumstances are different in Pakistan compared to India.
India backed out from cotton contracts and policymakers in Pakistan want to promote Indian merchandise and annihilate local industry and trying to push Pakistan into a cul-de-sac. PSMA urged a review of import tariff. "We do not want to take the consumers for a ride but the cost push factors including price of sugarcane and other inputs need a rational review of the situation," he added . According to him, PSMA "is a responsible organisation" and does not intend to harm the interests of the country, but stakeholders must be taken into confidence before formulating any policy. TCP has enough stocks to meet with any likely shortage and no further import should be permissible under the circumstances. Sugar already imported into Pakistan does not conform to PSQCA standards and consumers have reservations over the poor quality, he added.