Lahore: In the confidential report submitted to the Punjab government, it has been revealed that the stay orders of the Lahore High Court are the reason why sugar is expensive.
Express News has obtained a copy of a confidential report submitted to the Punjab government on the rise in sugar prices, which reveals that the reason for the rise in sugar prices is the injunctions of the Lahore High Court.
According to the report, the injunction issued by Justice Shahid Karim and Justice Anwar Hussain of Lahore High Court on the issue of sugar prices on May 4, 2023 and August 1, 2023 has paved the way for the increase in sugar prices. The report states that sugar prices are being inflated and extortion coupled with exorbitant profits are being made by sugar mills, brokers and speculators.
According to the document, taking leave of the decision, the food department submitted a summary to the cabinet and the provincial cabinet delegated the sugar determination powers to the Cane Commissioner Punjab through the Punjab Foodstuffs (Sugar) Order. The Kane Commissioner started the process of fixing the X-mill price, however, another judge of the Lahore High Court, Justice Anwar Hussain, issued an injunction against the price fixing on August 1, 2023.
During this crushing season, the country produced a total of 7.730 million MT of sugar (including carry overstock), of which 5.032 million MT was stored in Punjab, the report said. Punjab’s reserves were sufficient to meet the requirements.
On May 4, 2023, Lahore High Court Judge Justice Shahid Karim on the objection that the subject of pricing is provincial. The next date has been fixed as 20 September 2023. Thus the stay order dates are being extended under one pretext or the other and sugar mills and bettors are charging Rs 100 per kg.
Till date about 1.4 million MT of sugar has been sold by sugar mills at an average extra of Rs.40 per kg. Sugar mills, brokers, dealers and speculators thus lost a crore of rupees. An additional amount of 55 to 56 billion was obtained only because of stay orders.
Justice Shahid Karim also issued an injunction against monitoring the sugar supply chain.
According to the report, the provincial authorities are unable to stop the movement of sugar and its smuggling into Afghanistan through Balochistan. MT sugar is smuggled out. This smuggling has depleted strategic sugar reserves in the country and especially in Punjab. These reserves were to meet the shortage of sugar in the coming year.
In a confidential report submitted to the Punjab government, it has been stated that the standing crop of sugarcane has decreased by 17%. Next year, Pakistan may have to spend substantial foreign exchange on sugar imports. The main reason for the increase in price is the injunctions of the courts. All cases of sugar mills are tried in the court of Justice Shahid Karim. All the cases have been decided in favor of the sugar mills and against the common people and farmers.
The nexus of sugar mills and brokers (each mill has 5-6 brokers who sell sugar to more dealers in the country) is responsible for the price hike. Sugar was plentiful in Pakistan this year. Due to the rise in international prices, sugar mills started smuggling sugar into Afghanistan. Sugar prices are inflated by brokers through various WhatsApp groups. Sugar in the mills changes hands and its price is skyrocketing.
According to the report, each new buyer adds Rs 5 to 20 per kg. This process is supported by the sugar mills as their sugar also becomes expensive without spending a single penny. The situation of sugar is becoming dire day by day. The price of sugar is expected to increase further. In other provinces there will be severe shortage of sugar and prices will be high. There is an urgent need to stop this worsening situation.
The report revealed that the moratorium needs to be lifted as soon as possible, otherwise the country and the province will plunge into further crises. Without the notified price, the food department and the district admin cannot control stocking or prices. Speculators, brokers, or those who wreak havoc on the Chinese market need to be detained under the MPO. Intelligence agencies can be tasked with uncovering such speculations.
On the other hand, an important meeting was held under the chairmanship of the caretaker chief minister on the increase in sugar prices in Punjab, in which the Secretary Food, while giving a briefing regarding the increase in sugar prices, said that the increase in sugar prices was due to the Supreme Court’s decision. 2 Due to stay order.
The Caretaker Chief Minister issued instructions that the stay orders given on the issue of sugar should be withdrawn immediately.
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