04 February 2005	Friday	24 Zilhaj 1425

ISLAMABAD, Feb 3: A high-level meeting presided over by Prime Minister Shaukat Aziz on Thursday decided to immediately import one million metric tons of refined sugar in order to reduce prices of the commodity.

Informed sources told Dawn that the meeting took serious note of recent Rs6 per kg increase in sugar prices and directed the Trading Corporation of Pakistan (TCP) to 'flood the market' with imported sugar.

The prime minister asked Minister for Industries and Production Jehangir Tareen to take the issue 'very seriously' as it was hurting the common man. Mr Aziz said that there was no justification whatsoever for the mills to increase the sugar prices at this stage.

The sources said that the prime minister directed the TCP to immediately release the stock of 400,000 metric tons of sugar with a view to stabilizing its prices. The import of one million metric tons of sugar would be in addition to 250,000 metric tons of duty-free raw sugar earlier allowed to be imported by the government.

The prime minister also directed the chairman Central Board of Revenues (CBR) to take action against those tax evaders who have erected 'weighbridges' at over 50 points in various parts of Punjab and were purchasing sugarcane through mobile purchasing centres/middlemen from farmers.

He said the government had been importing urea at Rs1100-1200 per 40kg and selling it at Rs450 per 40kg only to benefit consumers. "We cannot allow any unreasonable sugar price increases as it is against the interest of our people," the sources quoted the prime minister as having said at the meeting.

Those who attended the meeting were Prime Minister's Adviser on Finance Dr Salman Shah, State Minister for Finance Omar Ayub, Deputy Chairman of Planning Commission Dr Akram Sheikh and Economic Adviser to the Ministry of finance Dr Ashfaque Hasan Khan.

The sources said Mr Aziz also issued instructions to the provinces to take stern action against those engaged in profiteering by selling sugar at inflated rates. The meeting observed that the provisions of the Sugar Factories Control Rules, 1950, were being ignored by sugar mills who continued to purchase sugarcane from farmers through middlemen at Rs30-32 per 40kg against Rs40 per 40kg set by the Punjab government.

The sources said the meeting also took note of some elements within the government who were encouraging sugar price increases. Mr Aziz observed that consumers were being looted "which cannot be tolerated".

The sources said that the sugarcane purchased through middlemen was 'not' being shown in the mills production and thereby billions of rupees were being evaded in taxes. It was noted at the meeting that sugar mills "have quietly raised the ex-mill price by R 6 per kg without any valid reason".

On December 15, 2004, cane crushed by sugar mill was 54 per cent higher than the corresponding period of last year. Similarly, sugar production and its recovery was 63 per cent and 5.7 per cent higher, respectively.

The meeting was informed that the total production of sugarcane was 1.45 million tons as against 1.4 million tons of last year, showing an increase of 3.7 per cent.

Cane crushed up to January 15 was 17.1 millions tons as against 16.16 million tons last year, depicting an increase of 3.1 per cent. Likewise, the recovery was up by 3.3 per cent.