Minister for Industries and Production Mian Manzoor Ahmad Wattoo fears that the sugar crisis may deprive him of the ministry; well-informed sources in the Industries Ministry told Business Recorder on Friday. According to the sources, Wattoo himself expressed such fears when he was not allowed to travel to Lahore by air on August 21 to participate in a meeting summoned by the Prime Minister on August 22.
"It looks as if I will lose my ministry," he said at the airport when he was informed of the Prime Minister's message that his attendance was not required. The sources maintained that Wattoo, when put on the mat by the Prime Minister, had defended himself by stating that his price agreement with the sugar mill owners would be subject to the ECC approval.
This was denied by Pakistan Sugar Mills Association (PSMA) and documents and evidence from those who participated in the meeting, told this scribe that the ECC's approval had not been discussed. Official documents reveal that at a meeting with the sugar mill owners on August 18, the Industries Minister stressed the need for devising a strategy to ensure adequate supply of sugar to the consumers at reasonable prices during the holy month of Ramazan.
During the meeting, the acting President of PSMA stated that the price determined by the market had stability and durability, and proposed that while determining the market price, these factors should be kept in view. He expressed serious concern over the "raids" carried out by the Punjab government and cases registered against the management of the mills.
Representative from the Punjab government informed the meeting that his government had worked out arrangements with the Punjab PSMA to provide sugar during Ramazan at Rs 40 per kilogram and in this respect quota had been allocated to different divisions in the province and respective divisional commissioners would be managing the distribution/sale of this sugar.
Representatives from Sindh and Frontier also proposed similar arrangement for their respective provinces. Minister of State for Industries emphasised that such arrangements should be available to all provinces, including Balochistan.
The Chairman of Trading Corporation of Pakistan (TCP) and Managing Director of Utility Stores Corporation (USC) briefed the meeting about supply of sugar from the TCP and stocks lying in different mills to USC outlets.
The Minister, responding to the observations of the PSMA, assured them that the government wanted a healthy and congenial atmosphere for promotion of industry. However, at the same time it is the responsibility of the state to protect the interest of the consumers. He mentioned that the decisions were being taken through consultative process by taking the stakeholders on board.
The issue about the price of sugar during Ramazan and to facilitate the supply chain of sugar to the consumers was debated at length. After detailed discussions, the minister agreed to the following:
-- For the month of Ramazan ex-mill ceiling price of the sugar to be Rs 48 per kilogram in Sindh and NWFP and Balochistan and Rs 49.75 kilogram in Punjab.
-- Mills will release at least 200,000 tons of sugar in the market during the month of Ramazan.
-- From the stocks provided by the TCP, the USC will sell 100,000 tonnes of sugar from its outlets all over the country.
-- Special quota of sugar to be provided through the USC for Malakand Division.
-- Arrangement between Punjab PSMA with the Punjab government for supply of 10,000 tons of sugar at Rs 40 per kilogram during Ramazan was appreciated and it was agreed that provincial PSMAs will have similar arrangements with their respective provinces.
-- This price agreement caused a furore, forcing the Prime Minister to slash general sales tax (GST) on sugar by 50 percent.