Sugar crisis yet to subside as mills, govt blame each other

LAHORE: Despite direct monitoring by the prime minister himself and clear instructions of the court for reduction in price of sugar, plus adequate supply during Ramazan, the crisis of short supply and price-hike is yet to subside as the mills and government continue pointing figure at each other.

There are still complaints about short supply of sugar in the market as well as its higher prices. There are also complaints that only a kilogram of sugar was being sold to each consumers, creating inconvenience for people. The specially set up special bazaars have also failed to overcome short supply of sugar in the market.

On Thursday, Pakistan Sugar Mills Association (PSMA) Punjab Zone appealed to the Punjab chief minister to intervene and help the industry get out of the crisis. A spokesman for the PSMA claimed that due to harassment in Punjab, the sugar dealers, buyers and traders were not buying sugar from mills. As a result, the supply line from mills to market has become totally dry.

He urged the government to invite all stakeholders in order to avoid crisis getting worse. There is no buyer of sugar for approximately last two months and mills are facing crisis as some of them have to clear growers’ dues and some have to clear the banks, the government liabilities and taxes. But due to no sale, the situation had turned into a crisis.

The ex-mill sugar price of Rs80 per kg has inflicted losses of crores of rupees on the sugar industry. The cost of production of one kilogram of sugar has gone up to Rs105, the spokesman insisted.

The PSMA spokesman claimed that if the current situation continued, it might lead the industry to bankruptcy, leaving thousands of people jobless. Under these circumstances and crisis situation, the industry could not run any more, he claimed.

He said the sugar industry was ready to cooperate and work with the government in the national interest. The negative news in the media being propagated to tarnish the image of the industry were not based on facts and were aimed at destroying the image of the industry.