Pakistan to import Sugar to stabilise prices

ISLAMABAD: Government of Pakistan has officially opened Letters of Credit (LCs) to get the 85,000 metric tons of sugar imported under the government-to-government Sugar agreement, ARY News reported.

By this strategic step, the government aims to balance domestic sugar shortages and price instability.

The official sources have mentioned that, LCs have been communicated to banks, allowing the shipments of imported sugar in phases. The first consignment is likely to arrive at Pakistani ports within the next few weeks.

By this major initiative sugar supply continuity will not be stopped in local markets, further price hikes will be balanced.

Officials have assured that the imported sugar is of international quality standards and will be delivered within the specified timeframe.

The Sugar agreement has been made after the rising concerns over sugar price hike, which has been almost PKR 200 per kg in main cities.

Analysts link the crisis to the seasonal gaps, and sugar accumulation which caused sugar supply continuity disrupted.

The Sugar agreement is likely to play an essential role in balancing the market, confirming that sugar supply continuity is not disturbed during peak times.

Authorities highlighted that the distribution of imported sugar will be efficient to control both industrial and consumer needs.

Government’s current strategy will control inflation and ensure food security, and will let the sugar supply continues.

Read More: Govt allowed sugar exports on misreported data, CCP briefs FinMin

Earlier, Chairman Competition Commission of Pakistan on Monday told the finance minister that Pakistan’s sugar stocks have dropped owing to export of the commodity.

“The government allowed exports based on misreported estimates, which had resulted in drop in sugar stocks,” Dr Kabir Ahmed Sidhu informed Minister of Finance Muhammad Aurangzeb in the Competition Commission of Pakistan’s briefing over the sugar sector.

The CCP also briefed on the 2008, 2015 and 2019 sugar crises. “In all sugar crises in the past, sugar supply was restricted”.