Proposed rice-sugar swap deal with Philippines unlikely

ISLAMABAD, Pakistan is unlikely to materialise the proposed rice-sugar swap deal with Philippines, as the government of Philippines has also decided to import up to 1,50,000 tons of sugar duty free to ensure sufficient buffer stock, well-informed sources in Ministry of Food and Agriculture (Minfa) told. The Economic Co-ordination Committee (ECC) of the cabinet had directed the Commerce Ministry to approach Manila for striking a rice-sugar swap deal aimed at selling surplus rice and procure sugar at international price to meet the domestic needs of the country. In wake of the ECC's directives, Commerce Ministry has written a letter to Philippines government suggesting that if Philippine is serious in striking a deal with Pakistan on rice-sugar swap at government level, an immediate response should be given to Islamabad. Philippines' estimated sugar production in crop year 2009-2010 is 2.16 million metric tons and the country's ending inventory of domestic sugar is short of a seasonably normal level. Depleted world market supply and drop in world sugar production among the world's biggest sugar producing countries have led to high world prices and similar price spikes in the US market which necessitated the creation of "C-1" strategic reserve classification to take advantage of possible export opportunities of Philippines' sugar if local supply/demand conditions allow for the export of any excess.