Govt, millers asked to cut sugar prices

ISLAMABAD - Senate Standing Committee on Industries and Production Friday expressed its concerns over increasing prices of sugar and directed the government and mills association to decrease the prices of the commodity by Rs 8 per kg in order to provide relief to the masses.
The committee met under its chairman Senator Ishaq Dar at the Parliament House and discussed the ongoing sugar crisis in the country. The committee asked the mills association to decrease their profit by Rs 3 to 4 per kg and stressed upon the government to scrape the taxes by Rs 4 to 5 per kg, that could bring down the prices.
The committee urged the government to call a meeting of the sugar mills association in the next couple of days and decrease the prices, which are fluctuating between Rs 50 and 60 per kg in different parts of the country.
Earlier the members of the committee observed that the Trading Corporation of Pakistan (TCP) bought 3 million tonnes of sugar from sugar mills at the rate of Rs 25 per kg, and asked the Ministry as to why this sugar was sold with Rs 14 profit at Rs 39 per kg in the markets.
They also asked that the sugar mills previously gave away their sugar at Rs 25 per kg then what had happened that they wanted Rs 50 per kg for their sugar now.
Federal Minister for Industries and Production Mian Manzoor Wattoo told the committee that a lobby in the ECC did not allow to import raw sugar on time which created sugar crisis in the country. He said that a proper policy to tackle the sugar problems would be prepared within two months.
He further informed that sugar would be available at Rs 38 per kg in Utility Stores Corporation sale outlets to facilitate people in the holy month of Ramazan.
Secretary Ministry of Industries and Production Shahab Khawaja told the committee, The total demand of sugar was around 4.2 million tons, while in the current year we had a domestic production of only 3.2 million tons. Therefore, a shortage of one million tons had occurred and we did not import it on time, which created lots of problems.
Chairman Committee Senator Ishaq Dar said that the sugar mills association had made a cartel, which was responsible for the ongoing sugar crisis. He further said that the government should provide relief to the people as they were already facing a lot of problems due to unavailability of electricity.
Senator Haroon Akhtar who is also owner of a sugar mill asked the question that under what rules Punjab Government was conducting crackdown on mills association. Per kg sugar is costing us Rs 38 to 40, he said, adding, Then how the prices could be brought down. Protection was being given to consumers and farmers but who would provide protection to share holders, he questioned.
The committee was also briefed about the deficit of Pakistan Steel Mills and other related issues.
Senators Ahmad Ali, Abdul Haseeb Khan, Sami Siddiqui, Haroon Akhtar Khan, Adnan Khan, Mir Hasil Bazenjo and Managing Director Utility Stores Corporation, and Secretary Ministry of Industries and Production attended the meeting.