Govt Agreed To Ex-Mill Suger Rate

PAKISTAN, ISLAMABAD: The Federal government on Tuesday agreed to Pakistan Sugar Mills Association’s dictated ex-mill sugar price of Rs 48 per kg for Sindh and Rs 49.75 per kg for other provinces after marathon negotiations lasting over more than five hours.

After the meeting, Minister for Industries and Production, Mian Manzoor Ahmad Wattoo, who had reportedly sided with the representatives of sugar millers’ also announced that a strong worded letter written by the Secretary Industries for a crackdown on mills to recover hoarded stock was being withdrawn immediately. “I have also requested the provincial governments to release the arrested dealers along with their stock,” Wattoo told journalists who had waited for his talk for at least five hours in the Ministry of Industries corridors.

The Minister was asked how he was projecting the viewpoint of sugar mills which had been termed ’sugar mafia and thieves’ by the federal and provincial government, he parried the question. According to official sources, there was a deadlock in talks between the sugar mills headed by the Acting PSMA Chairman, Javed Kayani, but after the intervention “from the top”, government agreed to a price that was actually dictated by the PSMA.

The minister also failed to respond to some harsh questions of journalists who had worked out that people would be getting sugar at Rs 55 per kg in cities and Rs 60 per kg in far flung areas. Wattoo was of the view that there was no shortage of sugar but its rates had been increased due to international trend. He, however, failed to answer, the question whether the sugar mill owners had purchased sugarcane at international prices.

“Presently 1.2 million tons of sugar is available with the mills and TCP, which means there is no shortage,” he maintained. According to the Minister, TCP is importing 50,000 tons of sugar, in addition to 75,000 tons, which has recently been decided by the ECC. In reply to a question, he said that the landed cost of sugar is about Rs 65 per kg but the government will sell sugar at Rs 38 per kg at utility stores.

He said PSMA had agreed to sell 10,000 tons of sugar to the Punjab government at Rs 40 per kg for Ramzan Bazars , asking other provincial governments to strike similar deals with local sugar associations to provide sugar at cheap rates. Punjab and NWFP governments were asked to release sugar consignments stopped at Rahimyar Khan and Dera Ismail Khan so that there should be no supply issue.

The representatives of sugar mills who were accompanying the Minister at the briefing venue were snubbed by the journalists when one of their top representatives repeatedly ‘dictated’ the Minister. Interestingly, Secretary Industries Shahab Khawaja and Chairman TCP, Saeed Khan, kept themselves away from the minister.