Sugar crisis in Pakistan
Written by: Allah Nawaz Khan
allahnawazk012@gmail.com
There has been a sugar crisis in Pakistan and
this is not the first time, but crises have arisen repeatedly in the past. Not only does a sugar crisis arise in Pakistan, but crises of other commodities also arise. Sometimes there are crises of flour, sometimes of fodder and sometimes of something else. The recent sugar crisis began a few days before Ramadan. When the government took notice, the hoarders had earned profits of billions of rupees. Sugar prices increased dramatically during Ramadan. Sugar was being sold from Rs 170 to Rs 180. There is also an institution to monitor this, which is called the CCP (Competition Commission of Pakistan). The CCP has said that they are keeping a close eye on the ongoing sugar crisis. The CCP has also issued a warning that if any anti-competitive activity is found in this sector, strict action will be taken against sugar mills. According to the CCP’s statement, the increase in sugar prices is being monitored on a daily basis. Nothing. It can be said that how much benefit is the consumer getting from this supervision? Sugar mills were assured of an ex-mill price of Rs 140, but now the government itself has accepted the ex-mill price of sugar at Rs 159 per kg. Deputy Prime Minister Ishaq Dar has said that now the common consumer will get sugar at Rs 164 per kg. Earlier, sugar was being sold at around Rs 170 to 180, now due to the government taking notice, they will get Rs 164 per kg of sugar. Now the question is how much relief will the public get? Sugar priced at Rs 164 will be sold at Rs 170 only. If sugar is sold at Rs 164 per kg, the public will not get any special benefit. When an ex-mill price of Rs 140 was assured earlier, why was the sugar mills not made to abide by it? The government should take care of the public’s concerns and provide relief to the public as much as possible. Rising inflation has troubled the public and increasing the prices of sugar will only alleviate their concerns. There has been an increase in sugar prices. Just as it has been announced that strict action will be taken against those sugar mills that do not take care of the public interest, it should be ensured that those involved in negative activities are actually punished. Sugar has now become a commodity used in almost every household. There is no household where sugar is not used. Sugar is used in various food items and its purchase has become necessary. The government should reduce sugar prices so that the burden on the public can be reduced.
In 2020, the Competition Commission had revealed that Sugar Mills and PSMA (Pakistan Sugar Mills Association) were jointly involved in fixing sugar prices and controlling supply. The CCP also raided sugar mills. In August 2021, the Competition Commission imposed a record fine of Rs 44 billion on Sugar Mills and PSMA. This decision was challenged in the courts. An injunction was issued by the Sindh High Court and the Lahore High Court as well as the CTA (Competition Appellate Tribunal), due to which the collection of fines was delayed. There was a delay, but the fine amount could not be collected either. According to one report, the fine amount was very high, but only Rs 80 million was collected. All efforts to control sugar prices are stopped because big people are making profits and they do not want any action to be taken against them. Actions are also being taken. A few days ago, the Federal Minister Finance Minister Muhammad Aurangzeb has said that six sugar mills have been sealed due to the monitoring system and that due to the monitoring system, 24 billion sales tax has been collected from sugar mills this year. Such actions should be taken more so that sugar mill owners refrain from earning illegal profits.
It is necessary to determine the rates of sugar. Once the rate is determined, it should be ensured that the consumer also gets sugar at the specified rate. Sugar is stored to earn illegal profits. Strict action will have to be taken against hoarders. A few days ago, Prime Minister of Pakistan Mian Shahbaz Sharif also directed strict action against sugar hoarders and those who create artificial shortage of sugar to increase prices. The Prime Minister had said that there is ample supply of sugar in Pakistan. If there is ample supply of sugar in Pakistan, why is it being sold at a high price? Sugar prices can be controlled only by taking strict action against hoarders. Before Ramadan, sugar was being sold between Rs. 145 and Rs. 160 per kg, and in the month of January, the price of sugar was between Rs. 130 and Rs. 150 per kg. Now the prices have increased immediately, so the reason is that an artificial shortage has been created. “Sugarcane” is also sugar Mills get it cheaply. Sugar prices are much higher than cheap sugarcane. There is a need to control sugar prices. Not only sugar but also the rates of other commodities should be controlled. Fines imposed on sugar mills should be collected and that money should be used to control the prices of sugar and other commodities. The sugar crisis is not real but artificial. The Prime Minister of Pakistan has taken notice, this notice should be seen as a real notice.
