Government fails to rein in sugar price

Traders say they cannot sell sweetener at Rs70 per kg

LAHORE: Despite assurances in a court, neither the sugar industry has lowered the price of the commodity nor has the government been able to rein in its rates in local markets across Punjab.

During a hearing on June 11, the sugar industry assured the Islamabad High Court that it would sell the sweetener at Rs70 per kilogramme, but it failed to keep its promise as the price could not be reduced in markets across Punjab. Citizens are being forced to pay Rs80 to Rs 85 per kg in different areas of the province.

Forensic report on sugar crisis delayed

Traders claim that they cannot sell the commodity at Rs70 per kg since it is being sold at the rate of Rs76 in wholesale markets. A local retailer, Zulfiqar Ali, said small traders had no say in sugar rates. “It is a battle between titans – the government and sugar barons. Sugar miller are so powerful that even after an adverse inquiry commission report they are not ready to mend their ways and are selling the commodity at a high price,” he added.

Another shopkeeper, Waqas Butt, said when the local administration tried to enforce the rate of Rs70 per kg, it resulted in shortage of sugar in several areas. “Neither wholesalers nor retailers can afford the price cut if the mills do not reduce the rates. We are selling refined sugar for Rs80 per kilogramme and cannot sell below the cost,” he maintained.

Similar remarks were made by several other traders. Most of them were of the view that if the government wanted to give relief to the people, it should rein in the sugar industry and regulate the price at the wholesale level. A consumer, Muhammad Awais, said one after the other crisis was hitting the citizens.

“Earlier, the people had to face wheat flour and petroleum products shortage and now a sugar crisis is in the offing. It seems that nobody is available to address daily problems of common people. What is the purpose of the sugar commission’s probe that has proved that bigwigs of all political parties are guilty of profiteering?” he asked.

He said the government should find a strategy to curb hoarding and profiteering permanently by giving exemplary punishments. “Ad hoc measures and short-term relief cannot produce any result,” he underscored.

Punjab’s senior minister for food recently announced that the government would strictly implement the decision to bring down the sugar price to Rs70. He highlighted that authorities across the province had been issued instructions to implement the order.

He warned that profiteering on sugar would never be allowed as Prime Minister Imran Khan was committed to the welfare of the people. “The opposition should also appreciate reduction in sugar price. Efforts will be made to stabilise the price of flour like that of sugar,” he added.

Mill owners reject sugar crisis report

However, all his announcements and warnings could not help in bringing down the price in markets and proved to be mere lip service.

In a recent inquiry commission report it had been revealed that the sugar mills had unlawfully jacked up prices to make windfall profit and bagged billions of rupees in subsidy. Following the commission’s report, it was expected that the government would bring down the sugar prices but it remains a dream for the consumers.

Annual sugar consumption in the country is around 5.2 million metric tonnes. Thus a change of Re1 per kg helps the industry to fleece the consumers off around Rs5.2 billion. The sugar price in the country has increased by Rs10 to Rs15 per kg during the past few months.

Published in The Express Tribune, June 22^nd, 2020.