March, 11 2005	Friday	29 Muharram 1426

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ISLAMABAD, March 10: The government on Thursday decided to release sugar from 376,000 tons of official stocks and sell it through the Utility Stores Corporation at Rs23 per kg to keep prices under control in the open market.

The decision was taken by the Prime Minister on a summary submitted by the Ministry of Industries and Production to ease sugar prices which were hovering around Rs28 per kilogram all over the country, except Karachi.

The sources said the Trading Corporation of Pakistan (TCP) has been directed to release unlimited stocks to the USC at the rate of Rs21 per Kg. The TCP currently holds about 376,000 tons of sugar at its godowns.

The USC would sell the commodity to consumers at Rs23 per kilogram throughout the country at its 350 outlets besides its stalls at Friday, Sunday and Tuesday bazaars.

The inter-departmental price (from TCP to USC) was worked out jointly by ministries of commerce and industries and approved by the prime minister. The Economic Coordination Committee (ECC) of the cabinet had decided last month to release TCP stocks through the USC but price fixation delayed the implementation, the sources said.

The sources said around 1.5 million tons of sugar was currently available in the country, including stocks with sugar mills, sugar stockists and the TCP which was enough for more than four months of domestic consumption and hence there was no reason for the price hike. The country’s per month consumption of sugar is about 300,000 tons.

However, these sources said the crushing season would be over by end of this month and then it would become clear whether or not it was sufficient for local consumption.

The TCP had earlier sold about 86,000 tons of sugar to the USC in the month of Ramazan at the rate of Rs19 and Rs19.50 per kg. Even at Rs23 per kg, the consumers would get a benefit of Rs5 per kg as compared to open market price, a government official said.

The sources said this time the government had decided to fix comparatively higher prices to offset losses the TCP had incurred in the sugar procurement during the current season and was required to be met by the federal government through subsidy.

The ECC had also allowed unlimited import of raw and refined sugar early last month through the private sector which would start reaching shortly.

The sources said a directive from the prime minister to the provincial governments for taking administrative action against sugar hoarders did not bear fruits in reducing sugar prices owing to presence of some mill owners in the federal and provincial governments.

In separate letters to four chief ministers on February 8, the prime minister had directed the provincial governments to take strong and effective administrative action under anti- hoarding and profiteering laws against sugar hoarders to ensure that the available sugar flowed into the market to positively impact the consumer price.

The government was informed recently that sugar was emerging as a major challenge for the government because its prices have increased by Rs8 per kilogramme in the last few weeks without any reason.