Sugar import from Pakistan: Tajikistan seeking $20 less than international rates

Tajikistan has set new conditions for the import of sugar from Pakistan and now it is seeking a price of $20 less than international market instead of already agreed price. For last eight months, Pakistan and Tajikistan are negotiating to mature a sugar export deal, however, the deal is still pending despite several correspondences. 

Sources told Business Recorder on Monday that once again Tajikistan has declined to accept Trading Corporation of Pakistan”s (TCP) commercial agreement for export of 30,000 tons white crystal sugar and has set some new conditions for the import of sugar. Following refusal of TCP”s commercial agreement, much awaited sugar export deal between Pakistan and Tajikistan has been further delayed. About one month back, amended commercial agreement for export of sugar was sent to Tajikistan officials for their signature. The second commercial agreement was drafted in consultation with Tajikistan and as per their demand Pakistan had agreed to supply sugar in three tranches instead of a single tranche of 30,000 tons. 

However, now Tajikistan has declined to accept TCP”s second commercial agreement as is not willing to procure complete quantity of sugar through three consignments, sources said. Instead of accepting and signing commercial agreement sent by TCP, Agency on State Material Reserves of Tajikistan has asked TCP to reduce the agreed price of the commodity and minimise the consignment quantity by 50 percent. 

In recent correspondent with TCP, Tajikistan”s procurement agency has refused to get supply of 10,000 tons in three tranches and now seeking sugar procurement in six phases. “Now, Tajikistan has requested for supply of sugar in six tranches with each tranche of 5,000 tons. At the same time, they are demanding a price of $20 less than international market instead of already agreed price of $528 per ton,” they added. 

In the second week of August last year, in the presence of Minister for Commerce Makhdoom Amin Fahim and Nurmahmad Akhmedov Chairman Agency on State Material Reserves of Tajikistan, Pakistan and Tajikistan reached a sugar export deal, under which Pakistan will supply 30,000 tons of white refined crystal 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 international price stood at $548 per ton. 

With Tajikistan”s new demand, much awaited sugar export deal between two countries has further delayed and now it is being expected that sugar export deal will take some months to mature, sources said. Talks for export of sugar to Tajikistan are in process for last eight months, but continued to delay due to some disputes. 

Earlier, there was some confusion on the transportation expenses and later the variety of sugar as during the initial talks, Tajikistan had agreed to import white refined crystal sugar, while later it demand powdered sugar, which is costlier than crystal sugar. TCP has already made all arrangements to start sugar export to Tajikistan and some 30,000 tons of stocks of white crystal sugar have already been allocated for export purposes. 

Copyright Business Recorder, 2013

Muhammad Ramzan Rafique
Muhammad Ramzan Rafique

I am from a small town Chichawatni, Sahiwal, Punjab , Pakistan, studied from University of Agriculture Faisalabad, on my mission to explore world I am in Denmark these days..

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