Govt to 'keep watch' on sugar price

ISLAMABAD:

The government would constantly review factors behind the increase in sugar price as part of its efforts to ensure implementation of retail and wholesale rate of the sweetener in the market, finance ministry sources said on Friday.

According to them, the government would keep a close watch on any increase in the sugar price, adding that the price would be reviewed on a daily basis, while the industry ministry would keep the finance ministry informed about the rate.

"The government will continue to fully review the factors behind the increase in sugar price," a source added.

On Thursday, the ECC approved the summary of the Ministry of Industries regarding the export of further 100,000 metric tons of sugar, according to the Finance Ministry. The ECC had already allowed the export of 150,000 tons of sugar and gave the fresh approval by ignoring the violation of its previous decision.

At the time of the approval of the 150,000 tons of sugar, the ECC had decided that in case the local price increased above Rs140 per kg, it would cancel the export permission. The prices have already touched Rs150 per kg and yet the ECC gave the fresh permission.

"The benchmark for retail price of sugar may be delinked from the permission to export sugar as retail price is not directly under the control of sugar mills", according to the ECC decision.

The ECC further decided that the condition of revoking of export quota in case of non-payment of dues of the growers from proceeds of export of sugar shall be applicable only to the non-compliant mills rather than Pakistan Sugar Mills Association as a whole.

The ECC's decision suggests that the government of Prime Minister Shehbaz Sharif is also hostage to the elite capture. Instead of penalizing the violation of its decision, the ECC withdrew the decision to link export with maintaining local prices.

The ECC also decided that in view of procedural delays encountered during export of sugar, the period allowed for export of sugar from the date of allocation of quota by respective Cane Commissioner shall be extended from 45 days to 60 days.