LAHORE: The provincial Punjab authorities have advised the federal government to ban sugar exports to tame spiraling prices at the crushing seasons that could further fuel already high inflation, it is learnt on Monday.

 

 

The price of sugar used to see declining trend during sugarcane crushing season as huge quantities of commodity arrive in the market. However, in sheer contrast to this trend, since start of sugarcane crushing in early December in Punjab, ex-mill price of sugar increased from Rs 50.50/kg to Rs 58.60 till end of March 2019.

 

Industry officials fear that price of sugar during upcoming month of Ramzan could cross Rs65/kg if the present trend continues.

 

Punjab government has written a letter to ministry of commerce & textile and raised the issue of increasing prices of sugar ‘without any justification’. “The federal government has been asked to review decision of export keeping in view local prices of the commodity,” an official said.

 

The Economic Coordination Committee of the Cabinet its meeting held on October 2, 2018 allowed one million ton of sugar exports. The ECC, however, imposed a number of condition on exports including a fortnight review of sugar stocks, export and price situation. It was also then decided that further exports would discontinue in case of any abnormal increase in the domestic price of sugar.

 

Punjab observed concern that there has been sharp increase in ex-mill price of sugar since commencement of current cane crushing season. “In view of this unusual trend, Punjab asked federal government to stock position of sugar and its prices and take a decision about export of the commodity with a view to arrest this unwarranted trend,” the official said.

 

Officials in the provincial government said export of sugar should be avoided in order preempt likelihood of shortage and price hike of this important commodity in the upcoming holy month of Ramazan.

 

Farming community also expressed dismay over role of powerful sugar industry right from beginning of sugarcane crushing season, which was delayed without any valid reason. The sugar mill owners in the Punjab started cane crushing only when Punjab government approved release of Rs2.90 billion for payment of dues to them. The inordinate delay in start of sugarcane crushing season led to protests by farmers. According to growers, crushing should have been started by third week of November by any means.

 

Officials said mill owners resisted any move to start buying sugarcane from farmers. “Such an awkward situation led to losses to growers as moisture content in sugarcane used to decrease if crushing is delayed,” they said. However, sugar mill industry still wanted to continue sugar export, keeping in view disposing of its huge stocks.