Sale of sugar at Rs 40 per kg: Sindh government fails to implement Supreme Court order

01 Dec, 2009

The Sindh government has failed to comply with the Supreme Court (SC) order to sell white refined sugar at Rs 40 per kilogram through Federal Board of Revenue (FBR) authorised persons due to unavailability registered and recognised dealers at the wholesale markets.
The Sindh Home Department has directed the traders of the commodity to get registered with FBR and to obtain national tax number (NTN) for legal trade of the daily-use kitchen items, but they have refused for get enrolled with the government. Due to lack of authorised dealers, the government has failed to follow the apex court directives, sources told Business Recorder on Monday.
They said the government has forced the manufacturers of the commodity (sugar mill owners) to ensure constant supply of sugar with ex-mill rate Rs 36 per kilogram, but there are very few registered dealers in the province that are registered with FBR. The sugar stock is available in the province, but there is no FBR authorised dealer to purchase and sell the commodity in the market, they added.
"The black marketing of sugar has broken all records and the commodity is being sold at the city's market at Rs 60 to Rs 80 per kilogram against SC orders," sources said, adding that "the department held meetings with the manufacturers, wholesalers and retailers of sugar and offered them to approach FBR for getting authority certificate and NTN, but none of them accepted the offer."
Talking to Business Recorder, Muhammad Faheem, General Secretary, Pakistan Sugar Mills Association (PSMA) Sindh-Circle, said the millers had offered the wholesalers to lift sugar stocks at the rate of Rs 40 per kilogram, but they are not interested to buy the available sugar. Even those wholesalers, who purchased sugar from the factories, are not ready to lift their stocks, he added.
He said the sugar mills have established fair price shops at the distance of 10 kilometres of their processing units where the refined commodity is availably at the rate announced by the apex court. The millers could not establish the fair price shops in the big cities to provide the crises-hit citizens with sugar, he added.
He said the millers are facing difficulties due to unavailability of sugarcane for crushing in the province. "The sugar mills, which have started the crushing season from the 1st, 2nd week of November, are running 70 percent below than their capacity due to expensive and shortage of crop in the country," he said.

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