Final lot of Indian sugar to reach Pak by May-end

The second shipment of 50,000 tonne sugar, part of the 1,50,000-tonne export deal to Pakistan, contracted by Indian Sugar Exim Corporation, will reach the neighbouring country by May end, an industry official said on Tuesday.

The industry body will start shipping the remaining 50,000 tonne around the same time.

The first consignment of 50,000 tonne has already reached Pakistan, he said.

"As of now, the final shipment of 50,000 tonne of sugar will be our last export consignment to Pakistan as we did not participate in the recent tender floated by the country," said Shanti Lal Jain, director general, Indian Sugar Mills Association.

Indian Sugar Exim Corporations, the export arm of the Indian Sugar Mills Association, did not participate in Pakistan's last sugar import tender, which opened on Saturday, owing to differences on quality parameters.

Close on the heels of bagging contracts to export 1,00,000 tonne of sugar, the Indian Sugar Exim Corporation last week contracted a deal to export additional 50,000 tonne to Pakistan at $491 a tonne on cost and freight basis.

"We have been exporting white sugar of 100 icumsa which is widely accepted globally. But Pakistan suddenly changed quality parameters and wanted sugar of 80 icumsa," Jain said.

Supplying sugar of 80 icumsa to Pakistan will prove expensive, he said.

Icumsa is a numerical grading system of white sugar and lower number indicates better quality.

Pakistan, a sugar deficient country, has so far made purchases of 2,75,000 tonne of white sugar. Trading Corporation of Pakistan is likely to float another 50,000 tonne import tender on April 29.

A sharp rise in sugar prices in Pakistan due to supply crunch had prompted it to lift a four-year ban on imports from India.

Pakistan is likely to produce only 2.5 million tonne sugar in the current October-September season against a demand for 3.8 million tonne.

India's output is pegged at 19.1 million tonne, up from 13 million tonne last year.

Indian mills need to export 2 million tonne white sugar in lieu of the equivalent amount of raw sugar imported in the last season in the wake of severe cane shortage due to drought.

Under the advance licence scheme, Indian manufacturers have to export white sugar in quantities equivalent to the raws imported within 24 months.