Ban on sugar export: PHC directs ECC, stakeholders to decide matter in two weeks

PESHAWAR: The Peshawar High Court (PHC) on Saturday directed the Economic Coordination Committee and all other stakeholders to decide about the ban on export of surplus sugar by the Khyber Pakhtunkhwa government while keeping in view the prevailing ground situation.

Announcing the reserved verdict and disposing of the instant writ petition challenging the ban on the export of surplus sugar by the Khyber Pakhtunkhwa government, a division bench of the PHC comprising Justice Ejaz Anwar and Justice Dr Khursheed Iqbal observed that the under the constitution, the federal government had the authority to allow any kind of export, but the needs of the province must also be taken into account.

According to the verdict, the KP government had complained about the shortage of sugar in the province on several occasions and recently an increase of Rs2 had been witnessed in the price of sugar. So, there will be a shortage of sugar in the province before the new crushing season.

According to the decision of Justice Dr Khursheed Iqbal, the provincial cane commissioner also did not present his case well in the Economic Coordination Committee, which could not put all the points on record. Besides it, the minutes of the two meetings were also provided to the high court

According to the verdict, the federal government and the economic coordination committee under the constitution had allowed the export of surplus sugar, therefore, it would be better to put the stance of the KP government before them. Both should decide the matter and take a decision within a fortnight.

“Because at this stage, the Peshawar High Court considers it appropriate that instead of any interference in this decision, the matter should be sent back to the Economic Coordination Committee, which will review all the issues and issue a decision only after that,” the verdict said.

The court decision has also directed the federal government to consider the needs of the province and the recent increase in sugar prices as the provincial government was of the view that the price of sugar had increased in recent days.

“Although the permission to export was given on the condition that the price of sugar would not rise above Rs145 but the recent increase of Rs2 is a proof that if export is allowed at this time, there will be shortage of sugar in the province before the next season,” the court verdict reads.

The court observed there was a risk of price hike and the high court deemed it appropriate that the Economic Coordination Committee should take all the stakeholders into confidence and make a decision within two weeks.

Earlier, the PHC had reserved its decision on a petition against the ban on the export of sugar by the Khyber Pakhtunkhwa government.

Justice Ejaz Anwar and Justice Khursheed Iqbal had heard the petition. The lawyer for the petitioners Ishaq Ali Qazi, Additional Attorney General Hazrat Said, Additional Advocate General Mohammad Inam Khan Yousafzai had appeared before the bench.

The lawyer appearing for the petitioner had told the bench that Pakistan was the sixth largest grower of sugarcane and the ninth largest producer of sugar in the world. He had said the Punjab and Sindh governments had given approval to the sugar export after the federal government did so, but the KP government had imposed a ban to this effect. He had pleaded that the decision by the KP government had caused losses to the sugar mills.

He had said that the sugar mills, which were operating in KP, employed thousands of people in the province. The lawyer had said the government had banned the export of sugar, which was causing losses to the growers and wasting the opportunity to earn foreign exchange.

The lawyer had said the federal and provincial government should be asked as to why the ban had been imposed on the export of sugar. There was enough stock of sugar in the country and the price of the commodity could be maintained at Rs140 per kilogram. The Economic Cooperation Committee, had also approved the export of sugar, he said, adding that as per the procedure adopted for the export around 64 sugar mills from Punjab, 30 from Sindh and six from Khyber Pakhtunkhwa had been allotted the quota to export the sugar.