Sugar stocks about to exhaust Federal govt willing to release imported sweetener to province
Tuesday, November 03, 2009
By Riaz Khan Daudzai
PESHAWAR: Sugar continued to be the most-sought-after commodity across NWFP on Monday as stocks in the province continued to deplete.Taking cognisance of the situation, the federal government showed willingness to release sugar imported by the Trading Corporation of Pakistan (TCP) to the Frontier.

During a market survey by The News on Sunday and Monday, it was observed that sugar was not easily available even in Super Store outlets and garrison stores in the cantonment. The retail markets on University Road, Hashtnagri, Dilazak Road, Charsadda Road and other areas had not received sugar supply for the last three days.

Prices had risen during the last week as the commodity was short in supply, but the government said that stock for sale could be coming onto the market in a day or two.The prices in suburban areas jumped higher than Rs70 per kg as sale of sugar in the wholesale markets in Rampura Gate and Ashraf Road was restricted to five kgs to each retailer.

President of the Sugar Dealers Association Haji Shakirullah Khan said they were provided 2,520 bags of 50kgs on Sunday, while on Monday they received 2,000 bags.He said the commodity was distributed to the 11 dealers operating on the Rampura and Ashraf Road who were selling their quotas at the rate of Rs40 per kg.

One of the dealers, who wished not to be named, said that the government would have to improve its management at the district level as complaints of hoarding at the Rampura gate market still persisted.

It was also learnt that some sugar mills after the Supreme Court decision had stopped releasing sugar to the provincial government on the pretext that they had already released over 30 per cent of the stocks to the government. Khazana Sugar Mills was among these mills.

The NWFP Food Minister Muhammad Shuja Khan Monday called meeting of the Sugar Mills Association to sort out the matter.Talking to The News, Shuja Khan said that the Sugar Mills Association office-bearers were referring to the Supreme Court decision of October 29, which allowed the millers to sell 70 per cent of their sugar in the open market and release 30 per cent of their stock to the provincial authorities.

The contention of some of the millers was that they had already released sugar in excess of the 30 per cent limit to the provincial government.However, Shuja Khan said his department convinced the millers to release 30 per cent sugar of their existing stocks.

“Even in the sale of their 70 per cent quota they would not be allowed to sell it in the areas of their choice. The food department would nominate districts to the millers for the supply of their sugar,” he added.

To a question about the stock in the province, the minister said they had stock for 25 days, which also included the 35,000 tonnes of the TCP sugar stockpiled in the Frontier which they were now allowed to lift.

Shuja Khan said that Chief Minister Ameer Haider Hoti had sent a DO letter to Prime Minister Yusuf Raza Gilani requesting him for the supply of 50,000 tonnes of sugar to the province so that it could meet its needs till the start of sugarcane crushing season in the province.

He said the prime minister was aware about the needs of the NWFP and the federal government had shown its willingness to supply about 53,000 tonnes of TCP sugar to the Frontier.“We have also requested the federal government to supply the TCP-imported sugar to the province at the local rate of Rs36 per kg for which the federal government will take the onus of extra-subsidy,” he added.

It was also learnt that on Monday sugar from Punjab started coming to the markets in Abbottabad, Mansehra and other places in Hazara division. However, its price was still very high as it was selling at the retail markets for about Rs60 per kg.Like certain other parts of the province and tribal areas, Kohat, Malakand Agency and Shangla were facing severe sugar crisis.