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Today's Paper | November 08, 2024

Updated 03 Sep, 2023 08:20am

Sugar mills extort Rs50bn from buyers: Punjab govt official

LAHORE: Since the Punjab government has so far been unable to fix the sugar price for sale in the market, it is being estimated that the sugar mills have extorted some Rs50 billion from people in the province, says Punjab food secretary Zaman Wattoo.

After the suspension of price notification of sugar at Rs98.82/kg by the Lahore High Court on May 4, the sugar mills as well as brokers hoarded the sweetener created an artificial short supply and then sold at exorbitant prices. The sugar is being sold in the open market to consumers from Rs170 per kg to Rs180 per kg.

Mr Wattoo told Dawn that the government’s actions were dependent upon the notified price. In the presence of notified price, he said action could be taken against the hoarders and the hoarded sugar be sold in the market. “Sugar is being hoarded and we cannot take action and sell it in the market at a notified price as the price notification was suspended on May 4 by the Lahore High Court,” he said and added that the case would be heard by the court on the next hearing scheduled for Sept 20.

It may be mentioned that the cane commissioner had earlier made an effort to fix the price but the mills owners obtained a stay order on the pretext that the Punjab government had no mandate to fix the price of sugar.

Meanwhile, the deputy commissioners of respective districts have been instructed to inspect the sugar mills in their respective districts and ensure that the sweetener was not hoarded in the warehouses of the mills or other godowns.

Published in Dawn, September 3rd, 2023

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