PHC wants answers on sugar exports

The Peshawar High Court (PHC) has sought a response from the provincial government and food department on a petition against not allowing the sugar mills of Khyber-Pakhtunkhwa to export surplus sugar despite the federal government’s permission.

A two-member bench of Justices Sahibzada Asadullah and Dr Khurshid Iqbal heard the petition filed by Chashma and Tandiawala Sugar Mills. On this occasion, Advocate Ishaq Ali Qazi, counsel for the petitioning mills, told the court that the two sugar factories were located in Khyber-Pakhtunkhwa. “The federal government has given permission to export 150,000 tons of sugar in April 2024 on the request of the Pakistan Sugar Mills Association.”

He pointed out that the ratio of sugar export was determined under different procedures. The lawyer said that for the export of sugar, it was stipulated that the price should not exceed Rs140 per kg.

“On the basis of this condition, export of 150,000 tons was allowed even though there is more than 800,000 tons of sugar surplus in the province at the moment. Even if the sugar available in the province meets the needs of the whole country, the commodity will remain in surplus.”

He told the court that the Economic Coordination Committee also formally approved it. Under a procedure, a 64% quota was allotted to mills in Punjab, 30% to mills in Sindh and 6% to mills in Khyber- Pakhtunkhwa.

“However, the provincial governments were instructed that they will distribute the quota of the mills themselves and these issues will be resolved within seven days.”

Since this order was issued on June 26, 2024, the K-P government called a meeting in this regard on July 3. However, the cane commissioners of Sindh and Punjab had already formally distributed the quota on the same date. The K-P government meeting on July 3 ended without any results.

In the cabinet meeting held on July 9 and 12, no permission was given to export sugar. In the moot, it was decided that the provincial government cannot allow the export of sugar in this season.

He told the court that after these orders of the provincial government, the petitioners approached the court. Qazi said that under the law, the authority to allow import and export lies with the federal government. He added that there was no fear of a sugar shortage, and 150,000 tons has been allowed out of 800,000. He calculated that the surplus amounted to more than 600,0000 tons. He told the court that all the while, exports from other provinces were continuing.

The counsel for the petitioners told the court that under Article 150 of the Constitution, when the federal government gives permission, it is mandatory for the provinces to allow the same. He also pleaded with the court that such measures will have a negative impact on investment and no one will take interest in the province.

After hearing the preliminary arguments, the court issued notices to the provincial government and sought its response.

it is worth mentioning here that the PHC has foregone a month’s worth of summer vacation to clear out its backlog of cases. Just last week, the achieved a significant milestone by clearing a six-year backlog of cases involving employees of subordinate courts.