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Tajikistan to sale less sugar due to storming weather season.

ISLAMABAD -- While citing unfavorable weather season for import of sugar, the government of Tajikistan is mulling over to sale less than of 30,000 tons sugar in first phase, say sources.

According to sources Memorandum of Understanding (MoU) had already inked between both countries for the sale of 30,000 tons refined sugar at $528.25 per ton to Tajikistan but now the government of Tajikistan was considering to sale 5,000 tons sugar in first phase because of its storming weather season which may blocked the roads between both countries.

"The remaining quantity of 25,000 sugar is likely to purchase by Tajikistan once stormy weather ended," the sources said, adding that

Pakistan has already finalized its all arrangements for the export of 30,000 sugar and for the purpose draft of commercial agreement had already sent to Tajikistan which is yet to be received.

The Economic Coordination Committee (ECC) of the cabinet has already allowed the sale at a price lower than the international market. Tajikistan had approached Pakistan with a request to provide 30,000 tons of white refined sugar at cheaper rates on humanitarian grounds. After negotiations, both sides agreed the rate of $528.25 per ton, $20 below the price on August 13 2012 in the international commodities market and at the same day the sugar price in the world market was at $548.25 per ton.

However, the ECC had taken the decision on sale at $20 per ton below the international market based on a summary that put the commodity price at $617.9 per ton in the global market, according to official documents. The agreed rate is also below the price in the domestic market, which is $535.5 per ton. This year, the country has surplus sugar and stocks stand at 3.1 million tons, of which 332,057 tons are with the Trading Corporation of Pakistan (TCP).

The government hopes that the stocks will be sufficient to meet demand until April 2013.The Ministry of Commerce pointed out that the price concession had been given in the wake of humanitarian crisis faced by the people of Tajikistan. Sugar will be exported to Tajikistan against 100 per cent secured cash letter of credit that the central Asian state will open through a first-class internationally recognised bank.
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Publication:The Frontier Star (Northwest Frontier Province, Pakistan)
Geographic Code:9PAKI
Date:Oct 15, 2012
Words:385
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