In a positive development, the ex-mill sugar price fell by nearly 29 percent and officials in the finance ministry expressed the hope that the sweetener will see a considerable decline in the open market in a few days. The ex-mill price in Karachi dropped to Rs100 per kg and in Punjab to Rs101 from Rs170 per kg.
Two days earlier, Prime Minister Imran Khan chaired a price control meeting in which the government officials decided to bring the entire sugar stock for sale in the market and start sugarcane crushing season from the 15th of this month across the country in order to control the escalating price of the sweetener.
The meeting decided that those found involved in hoarding and profiteering would be proceeded against strictly under the law. The premier also directed for ensuring strict implementation of the laws under the Sugar Factories (Control) Amendment Act 2021, Punjab Prevention of Hoarding Act 2020 and Punjab Registration of Godowns Act 2014.
After the government launched crackdown against the hoarders, the sugar prices started to decline drastically. The situation will be further improved with the commencement of crushing in Sindh’s several sugar mills.
Throughout the crisis, despite repeated indications from the federal government, the people were forced to buy sugar at exorbitant prices for several days. Sugar mill owners, wholesalers and middlemen together earned a profit of Rs 270 billion between September 2018 and October 2021 due to the extraordinary rise.
A report by the auditor general of Pakistan on factors leading to increased sugar prices shows that the Punjab cane commissioner’s office failed to assist producers procure cane at the officially fixed rate of Rs200 per 40kg. When mills paid an average rate of Rs260 per 40kg during the last harvest, it was only natural for them to raise their prices.
The government’s job is to give a fair estimate of domestic output and, in case of expected shortages, import the commodity in time. To people struggling with inflation, it doesn’t matter whether sugar prices are rising because of market manipulation or some other factor. They know that it is the government’s job to ensure the easy availability of food items at affordable rates.
