The sugar swindle

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The sweetener has left sourness with the customers. The incongruous decision of the federal government to export sugar and then import it back is being pondered by the hapless nation with their jaws dropped. Either the authorities are too naïve to understand the mechanics of basic economics, or they are obsessed with vested interests.

This is not the first time that a sugar scam is on the cards. Rather, it has become a modus operandi of successive governments to appease the sugar mafia — especially the mill owners and those who share the booty in the ruling clique — by playing with the support price of the sugarcane crop, then manipulating the raw and processed cost of sugar, and finally throwing it to the wolves at the altar of national interests.

This time again, the government has decided to import 750,000 metric tonnes of sugar that it had itself sold in the international market under a mysterious calculus. The product was sold at a price tag of Rs114 billion, and no one is sure what amount of foreign exchange it will incur to bring it back home. Such lopsided decisions are a crime, per se, and must warrant retribution.

Surprisingly, the swift manner in which the proposition and the entire decision-making process receive prompt passage from all stakeholders is enough to raise eyebrows, and warrants a national debate and inquiry. As far as the commoner is concerned, it leads to inflation, apart from torpedoing the domestic supply chain. This gimmick has led to a rise in sugar prices, and now the commodity is being sold at Rs190 per kilogram — a staggering Rs50 higher than the pre-export price. Yet the Ministry of National Food Security has the audacity to claim that there are sufficient stocks, and that imports were meant to lower prices!

This annually enacted swindle, meant to hoodwink the nation, is a curse. While the country has a total annual consumption of 6.4 million tonnes, it must ensure that appropriate stocks are guaranteed before any ambitious decision to export is taken — with due public endorsement. A valve to involve the consumers is indispensable to put a stop to such scams happening right under the official eyes and ears.