Punjab government ‘takes over’ sugar mills

Punjab government 'takes over' sugar mills

Row over price takes dramatic turn; owners rush to Islamabad

LAHORE: In what is bound to prove an immensely popular action with angry masses, the Punjab government on Thursday took over the 'unofficial control' of all 43 sugar mills in the province and deputed its employees to check and register the stocks.

The rather drastic step was taken after the owners of these mills reportedly refused to sell sugar at the government fixed rates. Punjab Food Minister Malik Nadeem Kamran confirmed to our sources that government teams had been sent to the sugar mills to verify the stocks. "The sugar mills were not giving the Punjab government their sugar stock positions despite several reminders," he said, adding that the Punjab government had again called the millers to discuss the price issue on Thursday night, but they never came.

Initially the Punjab government had asked the Pakistan Sugar Mills Association ,Punjab chapter (PSMA-Punjab) to ensure sugar supply at the designated points and special Ramazan bazaars at Rs 40 per kg during the holy month. But, as put by one senior Punjab government functionary, "federal minister Manzoor Wattoo threw a spanner in the works by inexplicably capitulating before the powerful sugar lobby and fixed the ex-mill price at Rs 49.75 per kg and retail price at Rs 52 to 53 per kg in open market".

The Punjab government, however was anything but through with the issue. In a meeting with PSMA-Punjab, it again asked sugar mills owners to further rationalise the price and to sell the commodity for Rs 40 per kg at Ramazan bazaars. However, the representatives of the PSMA once again refused to entertain the request, arguing that the federal government had already fixed the prices and that they would supply sugar at the federal government rates.

Subsequently, in a meeting with PML-N Quaid Nawaz Sharif at Murree, top Punjab government hierarchy decided to regulate sugar prices administratively. The meeting was attended by Punjab Chief Minister Shahbaz Sharif, Senator Ishaq Dar, opposition leader in the National Assembly, Chaudhry Nisar Ali, CM's Special Advisor Pervaiz Rasheed, and Punjab Food Minister Malik Nadeem Kamran.

The PML-N leadership appealed to the federal government to waive the general sales tax (GST) and Excise Duty on sugar, which is Rs 5 per kg, so that sugar could be sold for Rs 40 per kg at the sugar mills' gates to provide relief to people.

The leadership was of the view that sugar stocks in the country were sufficient to meet the demand and that the crisis had been created by hoarders, profiteers and corrupt vested interests.

Meanwhile, sources in the sugar milling industry told that the understandably perturbed PSMA-Punjab office-bearers had already left for Islamabad. Sweet rich relief, is thy name Wattoo?