FB   
 
Powered bysps
        Society for Policy Studies
 
 

 
A Shortage Of Sugar
Posted:Aug 10, 2017
 
Print
Share
  
increase Font size decrease Font size
 
A rift is emerging between the government and the sugar mills since the last couple of days. It is due to the sudden price hike of sugar in the domestic market. Finance Minister Ishaq Dar, has directed federal secretaries to inform all provincial governments to look into the matter and take charge of the situation.
 
Dar is right in believing that a stable price benefits the public and causes lesser agitation. These items of daily use should not be costing that much, and a sudden price hike is certainly not what the public wants. The prices must also be in line with the standard set by the Economic Coordination Committee of the cabinet. However, in this scenario, there are a number of things that must be considered before blaming either party.
 
The Pakistan Sugar Mills Association (PSMA) has been highlighting that the government is exploiting the power they have over price demarcations and export since the start of the year. Despite the probability of exporting more, the government did not allow export of over 425,000 tonnes. No valid argumentation has been provided by any spokesperson of the government. This has resulted in the suppliers bearing with a huge sum of losses, which they can only cover by a price hike. It can only be assumed that the government is keeping an export quota in place to prevent a shortage in the domestic market, but if that is the case, incentives to sugar producers must be offered in return.
 
The cost of sugar production is way higher than the price set by the government, ie Rs60 per kg. However, to recover sales tax, the price needs to be adjusted to Rs66 per kg. What the provincial governments can do is set the price of sugarcane, but the price of sugar is set by market forces.
 
The government needs to provide a reasonable agenda for not allowing the export the sugar, especially when exports of the country have been decreasing due to overvaluing of the Pakistani rupee.
 
Sugar mill owners have pledged to stop providing any more sugar to the markets. All previous contracts are being fulfilled, and they refuse to take any more contracts unless the government accommodates them. While it is necessary to look at the comfort of the public; it should not be happening at the cost of our industries. This should not even be an issue considering that the year began with the promise of the sugar industry revolutionising itself with modern technology and bringing in a lot of revenues.
 
 
 
 
 
Print
Share
  
increase Font size decrease Font size
 

Disclaimer: South Asia Monitor does not accept responsibility for the views or ideology expressed in any article, signed or unsigned, which appears on its site. What it does accept is responsibility for giving it a chance to appear and enter the public discourse.
Comments (Total Comments 0) Post Comments Post Comment
Review
 
 
 
 
spotlight image Since Prime Minister Sheikh Hasina assumed office again in Bangladesh in 2009, bilateral relations between New Delhi and Dhaka have been on a steady upward trajectory.
 
read-more
Senior representatives from the US, China, Pakistan and Afghanistan met in Muscat, Oman, on Monday to revive stalled peace talks with the Taliban, but the insurgent group failed to participate in the meeting being held after a year.
 
read-more
Ruskin Bond’s first novel ‘Room on the Roof’ describes in vivid detail how life in the hills around Dehradun used to be. Bond, who is based in Landour, Mussoorie, since 1963, captured the imagination of countless readers as he painted a picture of an era gone by.
 
read-more
India’s foreign policy under Prime Minister Narendra Modi has attained a level of maturity which allows it to assert itself in an effective manner. This is aimed at protecting the country’s national interests in a sustained way.
 
read-more
Braid-chopping incidents have added to the already piled up anxieties of Kashmiris. Once again they are out on the streets, to give vent to their anger. A few persons, believed to be braid-choppers were caught hold by irate mobs at various places. They were beaten to pulp.
 
read-more
China has witnessed great historic changes in the past five years from the 18th National Congress of the Communist Party of China (CPC) to the upcoming 19th CPC National Congress.
 
read-more
In a move lauded worldwide, King Salman bin Abdulaziz Al Saud recently issued a royal decree allowing women to obtain driving licences.
 
read-more
Recently, United States President Donald Trump kicked the onus of the US backing out of the Iran nuclear deal to the US Congress. The question is how we interpret this technically, in terms of domestic politics and in terms of geopolitics.
 
read-more
It is a privilege to be invited to this most prestigious of law schools in the country, more so for someone not formally lettered in the discipline of law. I thank the Director and the faculty for this honour.
 
read-more
Column-image

Title: The People Next Door -The Curious History of India-Pakistan Relations; Author: T.C.A. Raghavan; Publisher: HarperCollins ; Pages: 361; Price: Rs 699

 
Column-image

Could the North Korean nuclear issue which is giving the world an anxious time due to presence of hotheads on each side, the invasion of Iraq and its toxic fallout, and above all, the arms race in the teeming but impoverished South Asian subcon...

 
Column-image

Title: A Bonsai Tree; Author: Narendra Luther; Publisher: Niyogi Books; Pages: 227 Many books have been written on India's partition but here is a firsthand account of the horror by a migrant from what is now Pakistan, who ...

 
Column-image

As talk of war and violence -- all that Mahatma Gandhi stood against -- gains prominence across the world, a Gandhian scholar has urged that the teachings of the apostle of non-violence be taken to the classroom.

 
Column-image

Interview with Hudson Institute’s Aparna Pande, whose book From Chanakya to Modi: Evolution of India’s Foreign Policy, was released on June 17.

 
Subscribe to our newsletter
Archive