KARACHI, May 26: Nine ships loaded with around 112,500 tons of sugar from India are expected to reach Karachi before the end of current month. Seven ships have already left Mumbai and Chinoy ports and of these two are likely to reach Karachi on Monday.

Talking to Dawn from Mumbai on telephone president Pakistan Commodity Importers Association (PCIA) Raees Ashraf Tarmohammad said that six ships were carrying sugar booked by the Trading Corporation of Pakistan (TCP).

He said that in India sugar prices in open market were low and it was being sold in the range of Rs17 to Rs19 per kg in wholesale market and Rs20 to Rs22 in open market. However, PCIA chief said that the consumer protection policy of India was keeping sugar prices well within the reach of the common man.

Mr Raees said that in early 1980s the Indian government set up a directorate of sugar that was responsible for mandatory collection of 45 per cent production from all sugar units and make it available at controlled price to the low income groups or those holding ration cards.

However, last year the mandatory collection was reduced to 10 per cent, which was collected at Rs11.50 per kg and made available to the common consumers holding ration cards at Rs13.25 per kg.

He suggested that similar scheme should be launched in Pakistan by which common and low income group people could be protected against the price hike of essential commodities. A major factor for low sugar prices in India, he said was the low tax rate.

Above all, he said there was no sales tax on sugar whereas in Pakistan there was 15 per cent GST which comes to around Rs4.35 per kg. Against this, Mr Raees said, in India only Rs87 per 100 kg or 87 paisa per kg is charged.

He said: “If our government exempts sugar from sales tax at import stage it could have an impact of Rs4.35 per kg which could be passed on to the end consumer,” he added.

Furthermore, he continued, if a directorate of sugar was set up with representatives of all the stakeholders, including growers, millers, traders and consumers it could help built buffer stocks.

Mr Tarmohammad said that pulses were not as cheap in India and in retail market masoor pulse was being sold at Rs28 per kg, mash (whole) at Rs52, mash at Rs68, moong (whole) at Rs52, moong at Rs56, black gram at Rs32, and chana, which is a by-product of black gram is being sold at Rs38 per kg.

The PCIA chief suggested that the government should allow processing machinery from India that is not only cheaper but also efficient. He said units such as splitters, separators and dryers of excellent quality were available and if their import was allowed they could improve the domestic processing yield from 75 per cent to 85-90 per cent.

However, he said that meat prices in India were very cheap as mutton costs Rs120 to Rs140 per kg and beef is available at only Rs50 per kg.