Government likely to allow duty-free import of sugar: PSMA asked to rationalise price

The government is likely to allow duty-free import of sugar in case local sugar industry does not support efforts to arrest rising price, sources told Business Recorder. This bitter message was communicated to a two-member delegation of Pakistan Sugar Mills Association (PSMA), comprising Sikandar Khan and K Ali Qazalbash.
"We have conveyed to the association, very clearly, that if they do not help the government in arresting the rising trend in sugar prices, the ECC may take a decision to allow its duty-free import," sources said.
However, government officials expressed serious apprehensions about ability to enforce this ultimatum to PSMA, as a prominent member of PSMA has very close relationship with the PPP top leadership.
Sikandar and Qazalbash, however, have not yet conveyed their response to the government ultimatum as "some of their members are out of the country and that's why they have requested for at least one week to respond," sources said. However, the Secretary was of the view that he has to report to the ECC in its meeting to be held on July 15.
The Ministry had summoned sugar mill owners on Saturday to convey the government's resolve not to allow them to create a crisis. Sugar prices have peaked at Rs 32 per kg in the retail market and unless the government took effective measures immediately, mill owners would fleece the people.
Secretaries' committee, headed by Finance Minister Naveed Qamar, on Friday held detailed discussions on stock, supply and price situation of sugar, flour, edible oil/ghee and pulses.
At present, sugar stock available with PSMA and Trading Corporation of Pakistan (TCP) stands at 1.85 million tons, which is sufficient to meet the requirements of five months (till November), sources said, adding that monthly requirement is about 350,000 tons.
The government would allow duty-free import of sugar if local sugar mills did not agree to supply commodity at below Rs 30 per kg, sources added. However, Secretary Industries, Shahab Khawaja was of the view that no such decision had been taken yet.