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Punjab Govt Blames Sugar Price Hike

Punjab Govt Blames Sugar Price Hike 2023

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Lahore–Punjab Govt Blames Sugar Price Hike on Tuesday that a suspension order issued by the Lahore High Court had halted the implementation of announced sweetener prices and hampered monitoring of the sugar supply chain, a major cause of the high sugar prices. accused of being one.

Deputy Prime Minister of Punjab Mohsin Naqvi chaired a meeting on sugar prices here. Speaking at a press conference, the food minister said a suspension order from the Lahore High Court had prevented obtaining records from the sugar mills.

In response, the provincial Punjab Govt Blames Sugar Price Hike decided to file an immediate appeal seeking the lifting of the suspension order. The Prime Minister instructed the Punjab Attorney General to pursue the complaint urgently. He stressed the need for an immediate appeal to lift the moratorium and stabilize sugar prices.

The briefing also emphasized that these stop orders give sugar collectors more leeway, causing huge spikes in sugar prices and causing hardship for the people.

Punjab Govt Blames Sugar Price Hike

 

The suspension orders issued on May 4, 2023 and August 15, 2023 paved the way for higher sugar prices, according to an official memorandum dated September 5, 2023. For some reason, the deadline for the residence order was extended. The August 15 suspension order prevented the state government from monitoring the sugar supply chain, which the government claimed led to the smuggling of sugar into Afghanistan. On the other hand, sugar producers and speculators were charging Rs 180/kg against a very fair and reported retail price of around Rs 100/kg. From 4 May 2023 to date, about 1.4 million tonnes of sugar have been sold by sugar mills at an average premium of Rs 40 per kg. Sugar producers and brokers/dealers/speculators have extorted another 55-56 billion rupees from the suspension order alone, the letter said. The Punjab provincial government claimed that the suspension of surveillance of the sugar supply chain made it impossible for provincial authorities to control sugar movements and smuggling into Afghanistan.

Official reports recall that a total of 7.73 million tonnes of sugar containing residues were produced during this processing season, of which 5 tonnes were produced. Punjab held stocks of 32 million tons. Punjab stocks were sufficient to meet the needs of the Punjab ‘consolidated area’. IKT, some KP, AJK, BG. Historically, Punjab has been in charge of the region in this regard. On 20th April 2023, the Federal Ministry of National Food Security & Research (MNFS&R) announced a factory ex-factory price of Rs.96.08/kg and a retail price of Rs.99.33/kg for Punjab. However, Punjab Govt Blames Sugar Price Hike the notice was withheld by the court on May 4, 2023, on the grounds that the price-fixing issue is a local matter, according to the government. The date for the next public hearing is set for September 20, 2023.

Punjab Govt Blames Sugar Price Hike
Punjab Govt Blames Sugar Price Hike

Taking advantage of this ruling, the Ministry of Food submitted a brief to the State Cabinet and the Cabinet delegated the power to set sugar through the Punjab Food (Sugar) Ordinance, 2023 to Punjab State Secretary Kaen. The Cane Commissioner then began the process of determining the out-of-plant price for sugar. However, on August 1, 2023, the LHC issued a moratorium on price maintenance. The case was resolved today (Tuesday, September 5). But the head of the whipping commission, who was present at the hearing, said by phone that the order to stop had not been overturned and that the case had been referred to the department’s court.

According to Punjab’s assessment in the fact report, about 700,000 tons of sugar were smuggled across the western border. Various factors have failed to stop this influx of sugar. The price of sugar is raised at the will of the parties concerned. You deserve the utmost rigor.

Smuggling has been observed to deplete strategic sugar reserves in the country, especially in Punjab. These stockpiles were intended to cover sugar shortages for the coming year. Cultivation of standing sugar cane decreased by 17%. Over the next year, Pakistan may have to spend a large amount of foreign currency on sugar imports. It is an eye-catching letter stuck on the wall.

Associations of sugar producers and brokers (each mill has five or six brokers who resell sugar to domestic traders) are responsible for price increases. Pakistan has had plenty of sugar this year. But as international prices rose, sugar mills began smuggling sugar into Afghanistan.

 

Punjab Govt Blames Sugar Price Hike

Punjab Govt Blames Sugar Price Hike

Sugar prices are hoisted by brokers through various WhatsApp groups. While sugar is in the mill, it changes vendors and prices skyrocket like anything else. New buyers he adds up to 5-20 rupees per kilo. The official statement said that the process is being assisted by the sugar mills, as the sugar in the mills spends not a penny and the price is skyrocketing.

Briefly recommend measures to achieve the lifting of the residence order as soon as possible, otherwise the crisis will be further aggravated. Without price notifications, food departments and local governments Punjab Govt Blames Sugar Price Hike.

cannot check hoardings or control prices. The brief also recommended arresting speculators/brokers who have effectively disrupted the sugar market under the MPO which provides for such measures. Through our sources, Punjab Govt Blames Sugar Price Hike details of some speculators were collected and shared in letters. There are many more. A secret agency may be commissioned to expose such speculative fraud, according to an official investigation report.

Commenting on the Punjab Govt Blames Sugar Price Hike  meeting and its outcome, market players said that while the government’s reservations on the suspension order may carry some weight, it would not be fair to place all the blame on the suspension order. Ta. He argued that the residency order would not prevent county administrations or border officials from inspecting or smuggling sugar away from factories.

The situation of sugar availability is aggravating day by day and it is apprehended that the price will further go up. In other provinces, there will be acute shortage of sugar and prices would be higher. There is urgent need to check this worsening situation.

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