Trading Corporation of Pakistan (TCP) is seeking ministry of commerce advice on sugar export to Tajikistan after it set new conditions for the import of sugar from Pakistan. Sources told Business Recorder on Monday that recently TCP has approached ministry of commerce to get go ahead to finalise sugar export deal with Tajikistan.
Despite the fact that talks are in progress for last eight months between Pakistan and Tajikistan for 30,000 tons of sugar export deal, it is still uncertain. In the last correspondence, Tajikistan had declined to accept second commercial agreement, sent by TCP for starting sugar delivery, as now it is not willing to procure complete quantity of sugar through three consignments.
Now, Tajikistan is seeking sugar procurement in six phases and each tranche will be of 5,000 tons. Previously, it was agreed that TCP will procure 30,000 tons of sugar in three tranches of 10,000 tons. In addition, now it is asking for a new price, which will be $20 less than international market instead of already agreed price of $528 per ton.
As per previous demand of Tajikistan, in February this year TCP got an appropriate approval from the ministry of commerce to sign the accord and accordingly prepare a commercial agreement to initiate sugar export to Tajikistan. However, as Tajikistan has set some new conditions, therefore the state-run grain trader has again approached the ministry of commerce for another green signal to prepare new agreement to complete a much-awaited deal.
Sources said TCP has sent all the details along with a letter received from Tajikistan to the ministry of commerce for its advice and appropriate approval. The ministry is likely to give response during this week, they added. The consignment of 5,000 tons is possible for TCP, while a new sugar export rate for this deal will be a difficult decision. During the initial talks it was decided that Pakistan will export sugar to Tajikistan at a discount price, which will be some $20 lower than international market. A price of $528 per ton was fixed for export as at the time of negotiations sugar price in the world market stood at $548 per ton.
