Sugar has disappeared from the retail markets after the government notified its price at Rs 40 per kg in the light of the decision of the Supreme Court of Pakistan. Finance Minister Shaukat Tarin has convened an inter-provincial meeting on October 19 to discuss the current sugar crisis and a long-term sugar policy.
However, a spokesperson of the Ministry of Industries and Production, in an interview on Wednesday, told Business Recorder that sugar "is available but media is focused on the negative side" of the story. Contrary to the claims of the Industries Ministry spokesperson, this correspondent personally visited some of the markets in the federal capital where the shopkeepers confirmed that since there was no supply of sugar at Rs 38 per kg by the government, they were unable to sell the commodity at Rs 40 per kg.
Yaqoob Shaha, a consumer who succeeded in getting one kg sugar at Rs 38 from the Utility Stores Corporation (USC) outlet, told this scribe that he found the kilo only after visiting several shops in the area. Long queues at USC outlets to buy sugar are being witnessed daily in the twin cities. However, the commodity is supplied only at specific times.
When asked why the federal government had failed to provide sugar to the public at the rates fixed by the apex court, a federal government spokesperson stated that it was the responsibility of the provincial governments to ensure supply, and not that of the federal government.
"We notified sugar price at Rs 40 per kg in the light of Supreme Court's decision, and directed the provincial governments to implement it. Now they are making their best efforts to implement it. You must appreciate them for their dedication. Punjab's Industries Secretary is lamenting the role of the media," she added. She, however, was of the opinion that the Punjab government should ensure sugar availability at Rs 40 in the federal capital which is its constitutional responsibility.
On the other hand sugar industry is of the view that it is selling sugar at Rs 36 per kg to the government, but are not aware of where it is going. "I was expecting this situation from the beginning of the crisis. The apex court fixed Rs 40 per kg for the common man but did not take account of the commercial buyers," he stated. He alleged that at present the District Co-ordination Officers (DCOs) and Food Inspectors are making money by selling permits.
Another reason of sugar shortage in NWFP is smuggling to Afghanistan where the prices are much higher than in Pakistan. So far, efforts of the government to stop smuggling have not borne fruit as reports say that sugar price in NWFP is ranging between Rs 80 and Rs 100 per kg in the black market. The annual sugar demand is around 4.20 million tons or 0.350 million tons per month, and production has been 3.19 million tons during 2008-09. According to Industries Ministry, functional sugar mills in Punjab are 45, 31 in Sindh, and 7 in NWFP.
Details of sugar mills in Punjab are as follows: Abdullah, Adam, Ashraf, Baba Farid, Brothers, Chanar, Chaudhry, Crescent, Colony (Phalia), Ethad, Fatima, Huda, Fecto, G. Sammundri, Hamza, H. Waqas, Hunza, Husein, Indus, Ittefaq, J.D.W., Kamalia, Kashmir, Kohinoor, Layyah, Madina Enterprises, National, Noon, Pahrianwali, Pattoki, Colony (Punjab), Ramzan, Shahtaj, Shakarganj, Sheikhoo, Tandianwala, United, Abdullah (Shahpur), Yousaf, Chishtia, Haq Bahu, Mecca, Safina, Tandlianwala-II, G.B. Pasroor,
In Sindh, sugar mills are: Al-abbas, Abdullah, Al-Noor, Ansari, Armywelfare, Bawany, Dewan, Dewan Khoski, Digri, Faran, Habib, Khairpur, Larr, Matiari, Mehran, Mirpurkhas, Mirza, Naudero, Pangrio, Ranipur, Sakrand, Sanghar, Seri, Shahmurad, Sindabadgar, Tando M. Khan, Kiran, Najma, Tharparkar, Dadu, Bachani.
In NWFP: Frontier, Khazana, Premier, Bannu, Chashama, Saleem, and Al-Moize Industries.