The Monopoly Control Authority has issued show-cause notices to 42 sugar mills, for withholding their stocks, on the basis of the data provided by Pakistan Sugar Mills Association showing quantity of production, release and remaining stock as on February 28, MCA sources told Business Recorder here on Wednesday.
They said that Section 11 of MRTPO 1970 empowers the MCA to issue show-cause notices to undertakings prima facie involved in undue concentration of economic power, unreasonably restricted trade practices, or reduce their production, sales or did not release the stock according to the requirements of the country due to collusive agreement.
They said that the statement issued by the PSMA indicated that 42 out of 75 sugar mills did not release their average stocks to respective provinces, which in case of Punjab was 37.99 percent, NWFP 29.38 percent and Sindh 48.81 percent.
According to PSMA data, countrywide production of sugar on February 28 was 2.338523 million tons (23,38,523 tons), stock release was 0.968529 million tons, stock in the mills 1.369994 millions tons, TCP replenished reserve stock at mills 0.110648 million tons, and total stock in hand was 1.493727 million tons.
The sugar mills which have been issued notices for not coming up to provincial benchmark release of the produced sugar are:
Shahtaj Sugar Mills Ltd (35.66 percent), Yousaf Sugar Mills Ltd (33.32 percent), PSMA Non-Member: Macca Sugar Mills Ltd (35.29 percent).
MCA sources expressed surprise over the sharp reaction and threatening tone of some sugar mill owners over the issuance of the legal show-cause notices, and said that it was a joint responsibility of the government and the public sector to supply necessities of life to the common man at reasonable prices.
According to reports, some sugar producers have 'decided' not to attended the meeting called by the Minister of State for Finance on Friday to review the sugar situation.