Govt pins sugar price hike on Sindh’s cane crushing delay

KARACHI: The federal government on Saturday pinned the current sugar price hike on Sindh government’s allegedly delaying sugarcane crushing, mounting pressure on the sweetener’s rates across the country.

Muzammil Aslam, Spokesperson to Finance Advisor Shaukat Tareen at a press conference also criticised the Sindh government for not taking sugar from the federal government for utility stores and “Sasta Bazaars”. Aslam further said it was a matter of ten to fifteen days in which maximum price would be extracted by the profiteers as the arrival of new sugar would stabilise prices because there was a bumper sugarcane crop and sugar production would be higher this season compared to last year.

“Punjab is supplying sugar at Rs85/kg at utility stores and at Rs/90 at Sasta bazaars. We have asked Sindh to do the same but they didn’t act on it,” Muzammil said while blaming Sindh government for not taking sugar from the federal government’s stocks for supplying it at rates cheaper than the prevailing ones, which hit Rs150 in Karachi and other parts of the province.

Explaining the reasons behind the current price hike, Muzammil said that Sindh sugar mills had to start the crushing season from October 15, 2021. Sindh cabinet had approved the support price for sugarcane and the starting date of new crushing season; however minutes of the meeting were not released, which delayed start of sugar crushing season.

“Sindh defaulted on its obligation to kick-start sugarcane crushing season adding to the pressure on the commodity in the local market and its impact has been felt throughout the country,” Aslam said. He said market forces took advantage of the situation and they raised prices as new sugar was not reaching the market.

Aslam, however, said sugarcane crushing season would start in Punjab as per schedule from November 15, which would improve the situation.

Finance minister’s focal person also said the federal government had imported 300,000 tonnes of sugar to stabilise the prices.

“The federal government has 150,000 tonnes of sugar in its stock. It supplied sugar to Punjab and also offered it to Sindh to make it available at utility stores and Sasta Bazaars, but they (Sindh) didn’t benefit from this offer.” He said sugar in government stock was being supplied to citizens at Sasta Bazaars and utility stores and was not being supplied for commercial purposes.

Aslam pointed out that commercial users like bakers, beverage makers, etc usually procured sugar directly from sugar mills, which jacked up prices, setting in motion a spiral effect that resulted in a countrywide sugar price hike.

“If sugar prices are being raised on speculations, then it is the responsibility of provincial government to take the measures through its price control machinery.” Punjab government took action against the forces that took advantage of the situation by raising the price of commodity, Aslam said, adding that Sindh government did not take action when prices soared in the province.