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 Indonesia’s President Joko Widodo has confirmed his presence for the occasion. In an exclusive interview with INDIA REVIEW & ANALYSIS, Indonesia’s Ambassador to India, Sidharto R.Suryodipuro, reminded Nilova Roy Chaudhury that the first Chief Guest for India’s Republic Day celebrations, in 1950, w
 
read-more
The words of Ho Chi Minh  “Nothing is more precious than independence and liberty” rang true for the people of the erstwhile East Pakistan when, with increasing brutality, the West Pakistani oppression spread across the land, writes Anwar A Khan from Dhaka
 
read-more
In a significant boost to New Delhi's Act East Policy, India and Japan set up the Act East Forum on Tuesday as agreed during Japanese Prime Minister Shinzo Abe's visit to India this year for the annual bilateral meeting that would help to focus and catalyse development in India's Northeast.
 
read-more
  United States Secretary of State Rex Tillerson reiterated on Friday Washington's warning that “all options are on the table” to meet North Korea's nuclear threat while offering to keep the lines of communication with Pyongyang open.
 
read-more
The 15th trilateral meeting of the foreign ministers of Russia, India and China concluded in New Delhi on Monday with many nuanced takeaways embedded in the joint statement of 46 paragraphs. Reiterating that the forum “is not directed against any other country”, the statement underlined the importance of the establishment o
 
read-more
The first thing that one sees when a flight approaches New Delhi is thick smog that envelopes the city and its lack of greenery.  In almost all other major cities of India lack of greenery is the most obvious sight that one sees when approaching it by air.
 
read-more

Pakistan has agreed to allow the rupee to depreciate after holding talks with the International Mone­tary Fund (IMF) on the country's economy.

 
read-more

Two major global changes in the past year; the ‘Brexit’ referendum and the advent of Donald Trump, writes Sandeep Kaur Bhatia

 
read-more

It is also imperative for India to explore other regions for markets. Its trade deficit with Latin America has been narrowing. Also, its trade with Mexico, Colombia and Guatemala has increased, ...

 
read-more
Column-image

Over the last 25 years, India's explosive economic growth has vaulted it into the ranks of the world's emerging major powers. Long plagued by endemic poverty, until the 1990s the Indian economy was also hamstrung by a burdensome regulat...

 
Column-image

Title: A Ticket to Syria; Author: Shirish Thorat; Publisher: Bloomsbury India: Pages: 254; Price: Rs 399

 
Column-image

Gorichen, a majestic peak in the Eastern Himalayas at an altitude of 22,500 feet, is the highest in Arunachal Pradesh. Beautiful to look at and providing a fantastic view from the top, it is extremely tough climb for mountaineers.

 
Column-image

It is often conjectured if the reason for long-standing conflicts and insurgencies, in the developing world, especially South Asia, is not only other powers fishing in troubled waters but also the keenness of arms industries, mostly Western, to...

 
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