Chairman National Assembly's Standing Committee on Commerce Engineer Khurram Destagir Khan the other day held Pakistan Sugar Mills Associations (PSMA) and ministries of Commerce and Industries responsible for the current sugar crisis in the country. During the meeting of the committee, which held here, Khurram said the crisis was created in connivance with PSMA and ministries of Commerce and Industries.
The committee summoned secretaries of ministries of Commerce and Industries, officials of Trading Corporation of Pakistan (TCP) and State Bank to its next meeting to explain the issue of import and shortage of sugar in the country. The committee decided to continue its investigations into the current sugar crisis and collecting proofs against those elements involved in creating artificial shortage and hoarding of sugar.
Chairman of the committee Khurram Dastagir showed the copies of two separate letters of ministries of Industries and Commerce to the members of the committee, regarding to stop second tender for importing 50000 tons sugar on May 29, 2009. He held Pakistan Sugar Mills Associations (PSMA) and the Ministries of Commerce and Industries responsible for the current sugar crisis, saying the crisis was created in connivance with PSMA and ministries of Commerce and Industries.
Khurram Dastgir told the meeting that according to first letter, PSMA has asked Commerce Ministry that it has sufficient stocks of sugar, therefore, there was no need to import sugar. On this, Commerce Ministry wrote a letter to the ministry of Industries on May 18, 2009, asking it to stop sugar import.
He said the second letter written on May 20, 2009 by Industries Ministry asked TCP to stop sugar import. The TCP held the tender on May 29, 2009 for importing sugar, which was to be opened on May 30, 2009. He said due to it, the country suffered a loss of Rs 800 million.
Khurram Dastagir said State Bank of Pakistan had set June 30 as deadline to millers to adjust their credit limits but later it was extended till September 30, 2009. Why the State Bank extended credit limits, he questioned. Commerce Secretary Suleman Ghani while replying to various questions of the members said PSMA office-bearers met him and said that there was no need to import sugar because they had sufficient stock. He said that he conveyed this information to the ministry of industries through a letter.
He told the meeting that Ministry of Industries did not cancel the second tender but deferred it for specific time and after the same tender was accepted. He said the decision to import sugar was taken by ECC. Ghani said that the consumption of sugar in the country is 25Kg per person while 18 Kg per person in India and 11 Kg per person in China.
Chairman of the committee said the committee noted that the attitude of Secretary and officials of the ministry was callous in their response to queries of the members on sugar crisis. The committee has decided to continue investigations into the sugar crisis, he said. About the performance of the committee the Chairman told the meeting that the committee held a total of 15 meetings. He added that the committee sought reports from the ministries of Industries and Commerce but these have yet to be submitted.