Indian sugar exporters eyeing Pakistan
NEW DELHI: Ahead of the holy month of Ramadan, when the demand for sugar peaks in Pakistan, Indian sugar exporters are hoping to reap benefits of opening of the Wagah border. Though, Pakistan has allowed its private sector to import sugar without limit and time bar, except from India and Israel.
The Indian sugar industry is hopeful that Pakistan may be forced to review its decision in the wake of spiraling sugar prices. The prevailing sugar price in Pakistan is around 30 Pakistani rupees a kilogram, while in India it is around Rs 18 per kilo. Pakistan is currently facing a sugar shortage of around 200,000 to300, 000 tonnes.
Indian sugar is expected to reach Pakistani markets at a price tag of $350-380 a tonne, including insurance and freight.
“Once Pakistan allows sugar exports from India, we will start finalising the procedures,” Sanjay Tapriya, the director-finance of Simbhaoli Sugar Mills said.
According to the industry, Pakistan’s sugar output declined in sugar year 2004-05 (October-September) to 3.3-3.4 million tonnes from 4.0 million tonnes last year.
The country consumes 3.6 million tonnes of sugar a year. India’s sugar output this year is around 13.5 million tonnes and it expects to increase output to 17.5 million tonnes next year.
Meanwhile, Indian automobile giant Tata Motors is planning to export passenger and commercial vehicles to Pakistan through its South Korean subsidiary Daewoo Commercial Vehicles Ltd.
“We are seriously looking at launching Tata’s commercial and passenger vehicles in Pakistan. One of the options will be to export our vehicles through our South Korean subsidiary. If the right conditions are met, we will also like to manufacture vehicles in Pakistan some day,” said the company’s newly appointed managing director, Ravi Kant. iftikhar gilani