Centre can't fix the sugar prices: LHC

Passes judgment in favour of millers who challenged Shehbaz Sharif-led govt’s decision

LAHORE (Dunya News/Web Desk) – The Lahore High Court on Thursday ruled that the federal government didn’t enjoy the powers to fix sugar prices as the provinces were the sole authority to decide the matter.

The verdict was announced by a two-member bench headed by Justice Shahid Karim as it decided in favour of the sugar mills owners who had filed petitions against the federal government for fixing the sugar prices.

It was the former coalition government’s decision to fix the sugar prices which had triggered the controversy with the mills owners moving the court against the move, as the people continued suffering from the rising food prices.

As the masses looked towards the government intervention to arrest the trend, the decision was welcomed by everyone. However, the action they had been waiting for was nullified.

On April 30, the federal government [Ministry of National Food Security and Research] had notified Rs96.08 per kg as ex-mill price and Rs99.33 per kg as retail for Punjab.

However, the LHC sprang into action and suspended the notification just four days later on May 4 with a contention that the subject of price fixing was a provincial matter.

It didn’t stop there as another stay order issued on August 15 which bars the provincial government from monitoring the sugar supply chain, which is incentivizing smuggling to Afghanistan.

As a result, the sugar prices in several parts of the country touched Rs200 per kg.

'LHC BEHIND THE SUGAR CRISIS'

Later, the Punjab government argued that the stay orders granted by the LHC) had enabled sugar mills owners and speculators to manipulate the market, minting billions in the process.

As Caretaker Chief Minister Mohsin Naqvi was briefed on the subject, officials told him that the government agencies were unable to ensure availability of sugar at the fixed price and monitor the supply chain thanks to the orders passed by the LHC.

The government couldn’t even obtain the sugar mills record, they added.

Thus, the sugar hoarders with the assistance of millers were enjoying a free rein, leading to a substantial increase in sugar prices and causing hardship for the people.

According to the information shared during the briefing, the millers had sold around 1.4 million metric tons of sugar since May 4 with an additional amount of Rs40 per kg, meaning that they along with dealers and speculators have so far extorted over Rs55 billion from consumers.

During the current crushing season, a total of 7.730 million metric tons of sugar, including carry-over stocks, were produced out of which 5. 32 million metric ton stocks were in Punjab.

These were sufficient to cater to the needs of the ‘integrated region’ comprising Punjab, Islamabad, parts of Khyber Pakhtunkhwa, Azad Kashmir and Gilgit-Baltistan.