Printer Friendly

Sugar mills, wholesalers behind shortage of sugar.

ISLAMABAD, July 25 -- There is no shortage of refined sugar in the country and some sugar mills, wholesalers, and profiteers are believed to be involved in creation of artificial shortage to gain abnormal profits, sources in the ministry of industry and production told Daily Times on Saturday.

The officials claimed that the sugar mafia put the federal and provincial governments in trouble but they clarified that there was no shortage of the commodity in the country. The official also claimed that price of sugar was on decline in international market.

As the holy month of Ramazan is arriving and increasing trend in price of sugar in open market is causing uncertainty among the people. At present, the commodity is selling at Rs 68 to Rs 70 per kg in open market but there is fear that it might rise further during Ramazan.

In Ramazan, consumption of sugar might increase because the people usually use sugar in beverages and meals.

The ministry of industry and production said that in 2009-10 the domestic production of sugar was 3.1 million tonnes against a consumption of 4.2 million tonnes which was worked out as 0.35 million tonnes per month at the rate of 25 kg per person annual consumption. To meet the gap of 1.2 million tonnes, the TCP had already contracted 725,000 tonnes of sugar to date, which was arriving regularly.

The Ministerial Committee constituted by the ECC in its meeting earlier in July decided to take strict action through provincial governments against hoarders, who create artificial crises and raise prices of sugar in the country. The meeting was informed that the government had sufficient stock of refined sugar till September 2010 and sufficient quantity of the commodity imports in pipeline, which would definitely stabilize prices. The meeting decided to take provincial governments into confidence and would take appropriate measures for recovery of sugar stocks.

Sources said that delay in imports of refined sugar was due to financial constraints, Public Procurement Regulatory Authority (PPRA) rules and others. The sources further said that according to the PPRA rules, a tender typically requires 17 weeks for maturity if a tender was finalised on Saturday. The complicated procedures adopted by the PPRA are also responsible for low import of sugar through TCP.

A consultative meeting held in the ministry of industries and production has decided that imported refined sugar would be provided to provinces during the month of Ramazan. It was decided to seek ECC's approval on supplying imported sugar in open market through provincial mechanisms to supplement domestic sugar stocks commencing July 28, 2010 in three interventions at fifteen-day intervals. This was to ensure more than sufficient supply of sugar in the market and thereby render any hoarding or price escalation unviable. In the first intervention, the following province wise provision of imported sugar would be made: Punjab-50,000 tonne, Sindh-17,000 tonne, Balochistan-

8,000 tonne, Khyber Pakhtoon Khawa- 20,000 tonne, AJK/GB-5,000 tonne. TCP would provide the stocks for the first intervention at the rate of Rs 56 kg to the provincial governments, which will sell it at the rate of Rs 61 per kg through their respective mechanisms.

President Pakistan Sugar Mills Association (PSMA) Iskander Khan told Daily Times it was is duty of the government to ensure timely import of the commodity to fill the gap of 1.2 million tonne. The government has to ban export of raw sugar (Ghur) so that supply of refined sugar is ensured in the local market. The PSMA suggested the government not to allow export of raw sugar but the government loosed about one lakh tonne refined sugar making capacity through making of Ghur and its export.

He suggested the government to provide level playing field to local sugar mills, ban export of raw sugar, and ensure credit facility after harvesting sugarcane. Officials in the ministry said after 18th Amendment, the provinces have to utilise their energies and ensure availability of sugar in open market particularly during Ramzan.

Published by HT Syndication with permission from Daily Times. For any query with respect to this article or any other content requirement, please contact Editor at

Copyright HT Media Ltd.

Provided by an company
COPYRIGHT 2010 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2010 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Daily Times (Lahore, Pakistan)
Date:Jul 25, 2010
Previous Article:'Textile industry plays a vital role in economy'.
Next Article:Cellular operators directed to sell SIMs by mail.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters