LAHORE: As a crackdown on sugar hoarders to end artificial increase in the sweetener’s prices has begun making headway, sugar mill owners on Sunday offered to supply the commodity to the Punjab government at a rate of Rs140 per kg.
The offer came a day after the provincial government filed a petition with the Lahore High Court to vacate a status quo order the LHC had given months ago against the powers of the provincial authorities to fix sugar prices.
The crackdown on sugar mafia across the country, which saw the arrest of dozens of hoarders and seizure of hundreds of tonnes of the commodity, has put the brakes on the rising sugar prices. Instead, prices are significantly coming down in some cities and towns.
Mill owners offer sweetener at Rs140 per kg to Punjab govt; cane crushing season to start on October 28
The sugar price had risen to Rs235 per kg in the retail markets of Chaman and other Balochistan towns, but it has now been reduced to Rs180 per kg as a result of the administrative action against hoarding. In Karachi, a fall of Rs15 per kg has been observed in its rate during the last three days. It is being sold at rates ranging between Rs170 and Rs180 per kg in different towns of Punjab.
In the meantime, talks between the Punjab government and sugar millers, continuing for the last three days, culminated in an agreement on Sunday.
Under the deal, announced in a meeting of the industry representatives with caretaker Chief Minister Mohsin Naqvi, the millers will provide sugar at Rs140 per kg. The commodity will be supplied to the masses through special stalls to be set up at model bazaars and Sunday bazaars across the province.
The mill owners’ delegation included Haroon Akhtar, Zaka Ashraf, Fawad Mukhtar, and others, while Punjab Industries Minister S.M. Tanveer and Chief Secretary Zahid Akhtar Zaman were also present.
Both sides also agreed to start the cane-crushing season on Oct 28. However, the press release issued after the meeting did not specify whether all mills across Punjab would become operational on Oct 28 or only in south Punjab, as per past practice.
Last year, the Punjab government directed the start of the crushing season in south Punjab from Nov 10 and in central Punjab from Nov 25.
Section 2(h) of the Punjab Sugar Factories (Control) Act 1950 defines the crushing season as the period beginning on Oct 1 in any year and ending on June 30 of the following year. Section 8 of the Act ordains the occupier of a factory to start crushing of cane not later than a date specified by the government, which shall not be later than Nov 30 every year.
Published in Dawn, September 11th, 2023
