KARACHI, March 4: Speakers at a seminar here on Saturday urged the government to formulate sound policies and ensure their strict implementation. They warned the government of serious implications if consumers were pushed to the edge.
The seminar on Need for a Comprehensive, Effective Sugar Policy was organized by the Pakistan Press Foundation (PPF) at its Vicky Zeitlin Media Library.
Malik Zadeen Khan, DDO Enterprises and Investment Promotion of the city government, described the hike in sugar prices as unrealistic and unprecedented which, he said, had hit hard the people, especially the poor.
He acknowledged that laws to control prices of essential items did exist, but maintained that the main player was the federal government, which was supposed to ensure adequate stocks and a balance between demand and supply.
He noted that the price of sugar had jumped from Rs23 to Rs43 per kg within a year, putting an extra burden on common man, who was already burdened with exorbitant utility bills.
Although there was an upward trend in sugar price in the international market, the almost double rate in Pakistan is simply not justifiable. He attributed the price hike to the sugar millers’ unfair attitude towards growers. The shortfall in the commodity up to one million tons could be eased to a great extent if the buffer stock available with the Trading Corporation of Pakistan (TCP) is used. The stock has cost the TCP Rs18 per kg.
Mr Khan said that policymakers had failed to realize the gravity of the situation. Instead of checking the price hike, a freehand had been given to hoarders and profiteers, he added.
He also strongly criticized operators of the utilities stores for forcing consumers to buy other items if they sought sugar at controlled price.
“If traders agree to sell sugar at controlled price, the city government will provide them suitable space at 100 Bachat Bazaars in the city,” he said.
Chairman Sindh Sugarcane Growers Association Ghulam Nabi Morai said that the government had failed to adopt a proper agriculture policy. There is no planning at any level for the important crops, including sugarcane, and no monitoring system as well.
He wondered that sugar crisis persisted despite the fact that some two million tons of sugar had already been produced during the current season and a huge quantity having been imported too. He said that an artificial crisis had been created to justify the import of sugar.
He pointed out that the country’s sugar requirement was just four million tons a year as against the supply of six million tons produced by more than 70 sugar mills if they could be run in their full capacity.
Umar Latif of the Pakistan Sugar Mills Association, Sindh, told the seminar that the impression that sugar millers were making profits was wrong.
“Ours is a processing industry and procurement of sugarcane makes 70 per cent of the total processing cost. We earn a margin of 8-12 per cent,” he said.
Chairman of the Helpline Trust, Consumer Protection Council, Hamid Maker said that the government, sugar millers, traders and growers were absolving themselves of any role in the sugar crisis. The poor consumer had to bear the brunt. “In fact, consumers themselves are responsible for the crisis as they have failed to react strongly to the price hike.”
He warned that if consumer was pushed to the edge, the incidents of Lahore could be repeated anywhere. He claimed that ministers owned some 72 per cent of all sugar mills and the same people were policymakers.
The TCP was mainly responsible for the sugar crisis because it failed to maintain the demand-supply equilibrium, he said, adding that despite having been granted permission, sugar millers failed to import a substantial quantity of sugar.
He asked the government to play its due role in overcoming the crisis.—PPI
