20000416

Govt to pre-empt sugar dumping

JAVED MEHMOOD

ISLAMABAD: The government has decided to pre-empt dumping of cheaper international sugar by maintaining the current level of 45 percent duty on the import of this commodity, it was learnt.

The Ministry of Food, Agriculture and Livestock (Minfal) earlier prepared a summary to recommend cut in the import duty to the Economic Coordination Committee of the Cabinet (ECC), but now it has given up this idea with the observation that tariff reduction can pave way for dumping of sugar, opening a pandora box for the local industry in future.

Initially Minfal had decided to recommend to ECC the import of only 200,000 tonnes of sugar as against shortfall of 500,000 tonnes to 600,000 tonnes in the production of sugar this year. Total production has been estimated around 2.40 million tonnes while 3 million tonnes to 3.1 million tonnes sugar is required a year for domestic consumption.

Sources told Business Recorder that the sugar industry has convinced the top brass in Minfal that the actual quantum of sugar is around 2.8 million tonnes keeping in view 375,000 tonnes carry-over and 2.41 million tonnes domestic production. This sugar is in addition to 200,000 tonnes to 300,000 tonnes revolving stocks with the traders in the open market.

The industry has explained to the ministry that in the light of 2.8 million tonnes sugar availability, the country needed only 300,000 tonnes of sugar for the month of October only because the current stocks of sugar are sufficient for domestic consumption till September this year.

The high-ups in Minfal seem to have agreed to the viewpoint of the sugar industry as a result the policy to avoid dumping of international sugar is being pursued by the government. The government, however, has started monitoring of stocks with mills strictly in order to ensure the smooth supply of the commodity in the country.

Till March 2000, only 3,360 tonnes of sugar had been imported, but it is expected that from April, import of sugar in bulk would start. The importers were looking towards the government for relief in the import duty before placing major import orders, but they must be disappointed over change in the policy regarding continuation of previous import duty, sources said.