AAJ TV : Pakistan Ki Awaz

KARACHI : Pakistan Sugar Mills Association (PSMA), terming the recent suo motu action of Lahore High Court as unconstitutional, has decided to challenge the verdict in the Supreme Court of Pakistan. Talking to Business Recorder, PSMA Chairman Iskandar Khan said LHC has no right to take suo motu notice against the price hike and only the SC has the right to take suo motu action against illegal increase in sugar prices.

"The LHC decision to ensure the availability of white refined sugar at Rs 40/kg is unconstitutional," the chairman added. He said it is not possible for sugar mills to sell refined sugar with ex-mill rate @Rs 36/kg as the cost of production on the manufacturing of sugarcane stands at Rs 38/kg. "The price of one kilogram sugarcane is Rs 35 and the millers paid Rs 2.31/kg General Sales Tax (GST) and 45 paisa Federal Excise Duty to the government, so how it is possible to reduce the ex-mill price of sugar," the chairman said.

The LHC had taken suo motu notice on a news appeared in a section of press to the effect that the market players earned billions of rupees due to escalation in sugar price in connivance with the political dignitaries whereby the price of sugar had gone up to Rs 52/kg and was likely to shoot up to Rs 60/kg during Ramazan.

"After the announcement of Prime Minister Yousuf Raza Gillani, the millers released sugar stocks with official ex-mill rate @Rs 45/kg, but the government could not control the wholesalers and retailers and the commodity has been sold at Rs 50 and Rs 52 respectively, Iskandar Khan said, adding that the government should launch operation against these elements, who are responsible for increase in sugar prices."

He said the sugar mills have already announced that they have around 1.3 million tons sugar stocks, which in no way is hoarding of the commodity and this stock is enough to cater to the needs of country till December 2009.

But the government decision of sugar import is aimed at bringing retail sugar prices with international prices. He urged the government to cancel the import tenders and purchase sugar from local millers for providing relief to the masses and to support the declining industry, he added.

Copyright Business Recorder, 2009