Punjab says it's LHC which triggered the surge in sugar prices
Business
Provincial top court granted two stay orders in May and August this year
LAHORE (Web Desk) – As the sugar prices are rising across the country to new high levels, the Punjab government says the stay orders granted by the Lahore High Court (LHC) have enabled sugar mills owners and speculators to manipulate the market, minting billions in the process.
Earlier this year, the federal government [Ministry of National Food Security and Research] on April 30 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.
Caretaker Chief Minister Mohsin Naqvi was briefed on the subject, as 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 are enjoying a free rein, leading to a substantial increase in sugar prices and causing hardship for the people.
According to the information shared during Tuesday’s briefing, the millers have sold around 1.4 million metric tons of sugar since May 4 with an additional amount of Rs.40 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.
On the other hand, the sugar price in several parts of the country on Tuesday touched the peak level of Rs200 per kg. However, it is being sold at Rs230 per kg in Quetta.
In Islamabad, Sargodha, Gujranwala and Lahore, the price hovers between Rs185 and 190, which is recorded at Rs180 per kg in Multan.
