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DJ Pakistan Buys 50,000MT Refined Sugar From UAE Firm
(Comtex Finance Via Thomson Dialog NewsEdge)KARACHI, Apr 29, 2006 (Dow Jones Commodities News via Comtex) --Pakistan has contracted to buy 50,000 metric tons of refined sugar at $523/ton from a United Arab Emirates-based firm, a senior government official said Saturday.
Abdul Malick, a director at the state-run Trading Corp. of Pakistan, told Dow Jones Newswires that the tender was awarded to Al-Khaleej Sugar Co., which submitted the lowest offer.
"The UAE firm initially offered the quantity at $523.50/ton, but they agreed to bring the price down to $523/ton," he added.
This is the sixth sugar purchase tender by TCP in 2006. Including the latest purchase, the TCP has contracted to buy 325,000 tons of refined sugar since February.
Another import tender for 50,000 tons is likely to open May 6.
Last year, Pakistan's government imported 200,000 tons of refined sugar to build up its stocks and to stabilize domestic prices.
Local traders have said aggressive sugar imports are expected this year by private importers to bridge the growing supply-demand gap.
According to a recent report by the U.S. Department of Agriculture, Pakistan's sugar cane production is forecast at 46 million tons, down from 47 million tons last season.
Declining returns in sugar cane are encouraging farmers to switch to alternative high-value crops such as wheat, the report added.
Domestic refined sugar production this season is estimated at 2.89 million tons against the domestic requirement of 3.8 million tons, the report said.
-By Imran Maqbool, Dow Jones Newswires; +92300-8229939; imran.maqbool@dowjones.com
(END) Dow Jones Newswires
04-29-06 1043ET
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