On the recommendations of the two-member committee, the government has finally decided to import 0.15 million tonnes refined sugar. The move is meant to check upward trend in sugar prices which have gone alarmingly high during the last two weeks. Sources said that the Ministry of Industries and Production has referred the summary to the Economic Co-ordination Committee (ECC) of the Cabinet, seeking duty-free import of 0.15 million tonnes sugar. The ECC is expected to meet on February 8.
Prime Minister Shaukat Aziz had constituted the committee, comprising Deputy Chairman Planning Commission Dr Akram Shaikh, and Adviser to Finance Ministry Dr Ashfaq Hasan Khan during ECC meeting on January 18.
The committee was assigned the job to study the reasons for sudden increase in commodity rates and suggest ways and means to control surging trend to protect the consumers' interest. The committee was asked to consult the Food and Commerce Ministries.
Sugar rates have gone up to Rs 28 in retail market and are expected more increase in the days to come. The reports of low production fuelled speculations of serious sugar shortage.
Sources said the rising trend in sugar rates is a cause of serious concern to the government, which is convinced that import of 0.15 million tonnes refined sugar at zero-rated duty could improve the situation.
The government made an abortive bid to stabilise sugar market by importing duty-free raw sugar last month. The move has created the new controversy as some circles are questioning the purpose of importing raw sugar and that too at low international commission for uniform sugar analyses (Icusma).
Low Icusma raw sugar could be sold to the market without refining. The critics say that the import of duty-free 0.25 million tonnes of raw sugar was allowed to favour a particular group.
Sources said that the policy makers have realised that raw sugar import is not the solution to the problem and this led to major shift in the policy to consider import of refined sugar.