Punjab caretaker government, in a special report, claimed the Lahore High Court (LHC) stay order, actually paved the way for the increase in sugar prices across the province.
According to the Punjab government report, sugar mills and speculators are charging Rs100 per kg and recommended that speculators needed to be detained under the Maintenance of Public Order (MPO).
The sugar mills, dealers, brokers, speculators have looted Rs55 to Rs56 billion by selling sugar on inflated prices per kg.
The report said prices of sugar are being increased enormously over illegal profits.
According to the report, Punjab cabinet gave authority to Punjab Cane Commissioner to determine sugar price. During the crushing season, a total of 7.7 million metric tons of sugar was produced in the country and 5 million metric tonnes of sugar stored in Punjab.
The reserves of Punjab were sufficient to meet the needs of the integrated region, as per the report.
“On May 4, 2023, LHC Justice Shahid Karim gave stay order the objection of fixing sugar price,” the report said.
On Tuesday, Punjab CM Mohsin Naqvi chaired a top huddle of provincial bureaucracy, in which it has been decided to file appeal against the stay order. The next date of stay order is fixed on September 20.
The report said stay order dates are being extended for some reason or for another.
Failure to stop smuggling
Punjab's government monitoring report further stated that the provincial authorities unable to stop the smuggling of sugar into Afghanistan.
To make up for it, the sugarcane crop has declined by 17 percent, and next year Pakistan may have to spend a substantial amount of foreign exchange on sugar imports.
According to the text of the report, the nexus of sugar mills and brokers is responsible for the increase in prices.
Due to the increase in global prices, sugar mills started smuggling sugar to Afghanistan.
Prices inflated via WhatsApp groups
In an innovative way, to increase prices, the brokers, sugar mills and hoarders used Instant messaging application WhatsApp groups to increase sugar prices.
The Punjab government own report acknowledged that situation has been becoming serious day by day.
“There is a fear that the price of sugar will increase further,” the report said.
There is a need to end the ban, otherwise the country and the province will suffer from further crisis.
According to the report, speculators have almost caused destruction in the sugar market.
Every sugar mill has five to six brokers who sell sugar to dealers to inflate the sugar prices.
