Sugar dealers decide to stop brokerage activity immediately

The country's sugar dealers on Saturday announced they are stopping brokerage activity immediately due to current inquiry by a Commission headed by Director General FIA, Wajid Zia.
This message has been conveyed by President Pakistan Sugar Dealers Association (PSDA), Asid Butt in a letter to Chairman PSMA Punjab.
The teams of Inquiry Commission are raiding dealers across the country and "misbehaving" with them. The teams have also asked banks to provide details of around 260 dealers/famers who have struck deals with the sugar mills.
PSDA, in its letter stated that "in Pakistan sugar is provided by manufacturers to general public through sugar dealers known as brokers, commission agents etc. Most of these dealers are the members of their respective chambers of commerce and do maintain their NTN registration. The commodity sold by manufacturer reaches the small shopkeepers, most of them unregistered in sales tax or who do not have NTN which implies that the value of sugar commodity involved is transacted through cash or online banking system and payment adjusted routinely.
"FIA investigation began with the brokers/ commission agents engaged in sugar business all over the country. In present circumstances of ' corona lockdown' this investigation has made the situation further grim and harassment scenario prevails in the sugar supply chain.
"Sugar dealers fear that obvious outcome of investigation henceforth would be for the supply chain to go underground. The supply of sugar commodity which is already under pressure will be further squeezed. In coming Ramazan, it will be difficult for the government to cope with the situation.
" We have not been left with any option other than stopping brokerage activity due to current circumstances from today. The responsibility of shortage of sugar in the market will be of the authorities."
"Sugar dealers have requested the sugar industry to get best advice from the FPCCI which should raise its voice at the highest level of government so that the coming difficult and grim sugar market situation is avoided. Further presently due to Covid-19 staff, consultant/lawyers are on leave making it impossible to comply with the impugned notices issued by the Chairman of Inquiry Commission," he added.
Meanwhile, according to media reports, a preliminary report which was shared with Cabinet last month about sugar and wheat crises was leaked on Saturday at a time when Prime Minister was in Lahore.