Probe against sugar mafia ‘unexpectedly’ comes to a halt

In a startling turn of events, the country’s top probing body on Tuesday halted its proceedings against the sugar mafia after the coterie doubled the price of sweetener and allegedly made billions through profiteering.

The interim government had ordered investigation after the price of sugar precipitously shot from Rs90 per kg to Rs180, and later hiked between Rs200 and Rs210 per kg.

Sources in the Federal Investigation Agency (FIA) maintained that the top brokers and hoarders of the commodity were summoned while record from the sugar mills was sought.

The investigation agency had earlier too carried out probe against the profiteers under the Sugar Inquiry Commission established in 2020, and reportedly, had sufficient information about them.

Despite having sufficient details, the FIA on Tuesday unexpectedly halted its proceedings against the sugar mafia.

Sources in the FIA noted that the sugar mafia had earned more than Rs550 billion through profiteering.
In 2021, the Competition Commission of Pakistan (CCP) moved to investigate charges of cartelization against the Pakistan Sugar Mills Association (PSMA).

It found the industry guilty and imposed a fine of Rs44 billion on it, which is yet to be received.The PSMA challenged the CCP decision at different forums across the country. A total of 127 petitions have been filed against the decision till now.

When contacted, the FIA spokesperson observed that the higher authorities had not responded on the issue of halting the probe against the sugar mafia.

Last month, the Lahore High Court (LHC) ruled that the provincial government had the power to control the prices of sugar and other essential food items.

The verdict came as a two-judge bench, comprising Justice Shahid Karim and Justice Sultan Tanvir Ahmad, allowed a set of petitions filed by sugar mills.

Through those petitions, the mills had challenged the Price Control and Prevention of Profiteering & Hoarding Order, 2021 issued by the federal government, invoking sections 3 and 4 of the Price Control and Prevention of Profiteering and Hoarding Act 1977.

The mills had berated the legislative authority of parliament to enact a law and the federal government’s jurisdiction to determine the sugar price within the province of Punjab.