950824

FIA sealed godowns to be de-sealed

Punjab mills allowed

to sell sugar at

Rs 15 per kilogramme

RIZWAN-UR-REHMAN RAZI

LAHORE: The Punjab Government on Thursday allowed the sugar producers to sell sugar at Rs 15 per kg in the bulk supply to open market and at Rs 13.50 per kg for the Utility Stores.

The Punjab Government also promised to de-seal all the sugar mills godowns which had been sealed some days back by the FIA.

It has also forwarded a summary to the federal government interior ministry for the withdrawal of the FIA men from these factories.

A high level meeting, with the Chief Secretary, Punjab in the chair was also attended by representatives of sugar producers on special invitation.

The meeting discussed in detail the proposal which had been moved by the provincial Food Secretary with the consensus of local sugar dealers and Punjab sugar producers.

The meeting which lasted for more than two hours, decided that bulk rates of sugar would not rise beyond Rs 15 per kg in the open market while the sugar producers would extend a helping hand to the government to provide sugar at Rs 13.50 per kg at the Utility Stores.

The Punjab Sugar Producers Association agreed to these rates on the condition that the law enforcing agencies would not bother the traders and sugar producers once this agreement has come in effect.

They were of the view that sugar rates would ultimately be re-adjusted after the coming of new crop of sugarcane.

Sugar dealers also impressed upon the government that import of sugar would be meaningless and harmful for the local sugar industry because by the time the imported sugar reached the market new locally produced sugar would be available in abundance.

The provincial government assured the sugar producers that their point of view would receive a sympathetic consideration.

PSMA Chairman Ismail Zakaria told Reuters, the government had agreed to release sugar confiscated in last week's raids on warehouses and drop charges of hoarding against mill owners as long as they could show they had reported stocks accurately.

"We have reached a very amicable agreement with the government that sugar prices should remain within reach of the common man," Zakaria said.

"We have voluntarily offered to keep the ex-factory price below 15 rupees and provide the government-run Utility Stores Corporation with 20,000 tonnes of sugar at 12.30 rupees a kilo."

Zakaria said the issue had been resolved in meetings between PSMA, the Commerce Ministry and the Federal Investigation Agency on Thursday. There was no immediate comment from the government.

Retail sugar prices had risen as high as 17.50 rupees per kg from about 14 rupees four months ago.

Zakaria said there was no shortage of sugar in Pakistan. Stocks exceeded 700,000 tonnes and will be replenished when the new sugarcane crushing season starts in October, he added.

Last week police confiscated privately-held sugar stocks worth an estimated one billion rupees ($32 million).

Zakaria said ex-factory prices had risen in response to higher sugarcane prices, power and fuel oil rates, and taxes, not because of profiteering or hoarding. It would be impossible to conceal sugar stocks from the authorities, he added.