Centre cannot set sugar price, court told

Millers seek two more days to try to find a solution.

KARACHI:
The federal government has expressed its inability that it could not set prices of sugar following transfer of functions and powers provided by the Sugar Price Control Act to the provinces.

Additional Attorney General of the federal government, Syed Talibuddin, said this during the hearing of a case in the Sindh High Court pertaining to controversy over determination of prices of sugarcane and sugar. A division bench, headed by Chief Justice Maqbool Baqar, had taken up a petition jointly filed by owners of various sugar mills against the executive powers to fix prices of sugarcane and sugar.

They challenged Section 16 of the Sugar Factories Control Act 1950 and the issuance of any official notification to set sugar prices by government departments under the law.



The court was told that a committee constituted by the government on the court’s order had failed to fix the price as the centre had no powers to do so after the 18th Constitutional Amendment.


The additional attorney general argued that in view of the National Sugar Policy 2009-10 the price would be determined by market forces. The federal government could not determine the price, he said.

Abdul Sattar Pirzada, the counsel for the millers, said an effort was being made by sugar producers and cane growers to find out a solution. He sought two more days to try to reach a settlement.

Accepting the request, the court adjourned the hearing until November 28. It also extended the validity of previous interim orders, restraining officials from forcing millers to kick off the sugarcane crushing season without determination of the cane price.

Published in The Express Tribune, November 27th, 2014.

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