The government's decision to cap sugar prices for a month based on cost analysis highlight the ongoing struggle to stabilise commodity prices in Pakistan. This follows a long history of price hikes in sugar and other essentials, aggravated by hoarding, speculation and market manipulation. This approach aligns with recommendations for transparent pricing systems and more effective regulatory frameworks to stabilise the market. By thoroughly examining production costs, such as raw materials, labour, manufacturing and transportation, auditors can assess whether reported prices reflect true production costs or are inflated.
For instance, sugar millers have argued that production costs are higher than the government's price cap, but cost audits can reveal inefficiencies or unjustified cost increases. Extending cost audits beyond sugar to other commodities like wheat, cooking oil and gasoline is essential for ensuring fair pricing in general. However, challenges such as producer resistance, corruption and enforcement issues must be addressed in order to ensure audits actually work as intended.
Sajid Awan
Dubai
UAE
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