A spokesman of Pakistan Sugar Mills Association (PSMA) has said that turning down of PSMA's offer of procuring sugar mills stocks at the importing cost by the government proves that sugar industry is 'not guilty' of sugar price hike.
In a press statement, he said, government's refusal shows that it was more interested in media trial of the industry instead of dealing with sugar prices. It was ironical that the government was busy in blame game against the industry despite availability of sufficient stocks of sugar in the market against average monthly consumption of 325,000 tons. The latest refusal by the government to buy industry's entire stock itself is enough to prove that there is no hoarding and that PSMA is ready to sell the entire stock provided there is a buyer, he added.
The spokesman further said "It is amazing that the finance ministry has convinced the State Bank of Pakistan, to issue a totally unrealistic circular and instructed the banks to call their working capital given to sugar mills by July 31."
This is impossible as the industry had an unsold stock of around 1.15 million tons on June 1, 2006. The importers had a stock of 200,000 tons on June 01, 2006. The monthly consumption is only 325,000 tons. So how is it possible to sell 1.35 million tons of sugar in 2 months when only 650,000 tons can be sold?
"Where can the industry sell the balance 700,000 tons" asked the PSMA spokesman and added that it is very unfortunate that State Bank has come under pressure of the ministry of finance.-PR
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