Some three and a half decades back, a nominal raise in the price of sugar triggered a public agitation. This is still in the living memory of many citizens.

The public now accepts escalation in the price of all commodities without a murmur. It even refuses to bother when the hike in any commodity's price smacks the rake-off.

This is how latest developments in the sugar sector appear to be: an agreement between some officials of the government and sugar millers to reap a rich harvest of profits by raising the price of the domestically-produced commodity and import it when there is no shortage in the country. On a small scale, this has happened in fertilizers but sugar is seeing the phenomenon at a much bigger scale.

All this started a few months back when the millers refused to start crushing on time because their sector was confronted with the problem of over production and possessed stocks that it could not off-load.

The government, obviously concerned with the plight of the millowners, stepped forward to bail them out by assigning the Trading Corporation of Pakistan (TCP) to purchase excess stocks from the millowners.

So far, so strange: what is the responsibility of the government when some industry over produces? Would the government purchase cloth from textile mills if they fail to sell their product?

For that matter, what would be the policy of the state when any sector mismanages its affairs- would it correct its mistakes by using the resources of the state for its benefit? The answer should logically be in the negative but, in the case of sugar sector, the state took an extraordinary step by purchasing excess stocks from the producers.

This wasn't a textbook prescribed intervention by the state but the measure could be explained as the government's effort to facilitate timely sowing of wheat by ensuring that cane crushing commenced on schedule as also to enable the millers to clear back payments of growers who needed the financial resources for investing in the next crop. The growers were not begging for special favours but only wanted their rightful payment.

There are ways, means and laws for settling dues in such cases. District administrations have a specified role for getting growers their dues but all said and done, one can understand the government's policy.

Wheat was required to be imported to meet domestic needs because of a shortfall in the crop produce. The government was apparently trying to have a better next crop. So it went out of the way to support sugar mill owners and purchased stocks from them.

But crushing did not commence on time in all cane areas with the result that wheat cultivation was delayed in many fields and growers are still awaiting clearance of back dues in most cases.

The sum total of the intervention is that it accomplished little other than providing unneeded relief to the sector. So far, so bad. What happened next is more disturbing because it is further support of the sector without any benefit to the government or consumers.

In a meeting held towards end September last year, the Economic Coordination Committee took up the issue of the price and possible shortage of sugar and decided to adopt measures to 'stabilize the price of the commodity' ahead of Shab-e-Barat and the holy month of Ramazan.

The meeting, presided over by the Prime Minister, Shaukat Aziz, directed the TCP to release 0.2 million tons sugar to ensure its availability in the market without price escalation.

As the TCP had purchased about 0.5 million tons sugar from the millers, the decision seemed appropriate, politically desirable for the government and, for a change, consumer friendly too.

The TCP had earlier submitted a plan for the sale of sugar to the commerce ministry and there did not appear any hurdle in the implementation of the directive. Why was, it not followed all the way is a question.

Perhaps the hue and cry Pakistan the Sugar Mills Association (PSMA) raised against the release of stocks was instrumental in influencing decision makers to ignore their policy.

It is also possible that the PSMA assured the authorities that there would neither be shortage of sugar nor a raise in its price and political, civil and military officials naively accepted its assurance.

Whatever the case, the PSMA raised the price of sugar. There is no justification for the move. In fact, the PSMA's reports provide evidence against any need for price escalation.

Its sucrose recovery registered increase during the last year. The quantity of sugar produced till December 15, 2004 was 600,000 tons while the production till December 15, 2003 stood at 367,500 tons.

In view of the statistics of higher production and sucrose recovery, the decision to raise ex-mill price of sugar can only be described as unfair exploitation of consumers.

Considering that the government had provided all possible support to the sector, the authorities were expected to deal strictly with the situation. They have instead given the sector a free hand for fleecing people.

The sugar sector has about 3.5 million tons sugar from fresh crushing and about 0.8 m tons from carry over stocks. In addition, the TCP has ample stocks to meet requirements and emergencies.

Which means that there is just no case for import of sugar, particularly in view of the fact that Pakistan's food import bill is becoming more and more expensive and the scales of imports of the country are heavier than exports.

In any case, import of sugar is a misfortune for an agricultural country that had a good cane crop and has no shortage of stocks either. In this backdrop, the shift of the government from directing the TCP to release sugar stocks purchased from mills to importing sugar becomes totally incomprehensible; it just does not make sense.

That the same body-ECC, the highest decision making body of the government for economic affairs should have taken the two decisions is simply bewildering. Indeed the latest decision to import sugar raises questions and doubts.

If the idea is to stabilize prices, imports would do that over a period of time take while release of stocks would have achieved this target immediately. The only conclusion to be drawn is that the government has given sugar mill owner time to sell stocks at a higher rate and take consumers for a ride-another ride to be exact. This is a case of generosity at the expense of the masses.