The Senate Standing Committee on Industries and Production has recommended that the Ministry should arrange the fixation of support price of sugarcane realistically and involve the provinces to monitor the difference in sugarcane price and retail price of the commodity.
In a report submitted to the Senate on Wednesday by chairman of the Committee Senator Ishaq Dar, the panel recommended that Managing Director, Utility Stores Corporation should issue written instructions to all outlets for apply uniform policy and no condition of minimum purchase of sugar should be imposed.
It further recommended that the government should stop supply of essential commodities to international organisations from the USC to make discount price items available to common man. In order to facilitate the poor community, the committee recommended that the USC should ensure full utilisation of subsidy in time by selling the agreed items and quantity aggressively during Ramazan.
For keeping the price low, it further recommended that the government should carefully chalk out a policy to maintain balance in demand and supply of essential commodities. It further recommended that to establish Utility Stores in rural areas, the government should open a branch of National Bank of Pakistan at sub-tehsil level all over the country and a summary on the subject should be sent to ECC by the MoIP.
It recommended that the government should facilitate the international organisations, busy in flood relief operations, by providing essential items at reasonable price from open market. The Ministry of Industries and Production shall submit after Ramazan the feasibility and working paper on increasing the number of Utility Stores to the Committee for its views, the report said.
It further said that the Ministry should in co-ordination with the Provincial Governments on action against the hoarding and cartelisation. The committee further recommended that the Ministry should consider formation of a taskforce headed by Minister of State for Industries & Production, which should proactively monitor the sugar price and allied matters and take appropriate steps on priority basis in consultation with all the stakeholders to avoid similar crisis in future.
In the light of ECC decision of September 21, 2010, the Ministry must make sure to fill the gap between supply and demand which is estimated to be 0.84 million tons, the committee suggested. In order to equate the supply and demand of sugar, the Ministry should meet the representative of the local sugar industry and discuss the import of sugar by private sector.
Furthermore, the committee also recommended that the Ministry should assure the local industry that if they can guarantee to meet the demand of 0.84 million tons sugar shortfall, the government will impose import duty on sugar. It further recommended that the TCP should release its stocks, only if price of sugar increases, as the present sugar stocks are sufficient for 3.5 months.
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