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Business & Finance

Sindh doesn't want help in resolving sugar crisis: finance ministry

  • Province has 'defaulted on its obligation', says Muzzammil Aslam
Published Updated

Ministry of Finance spokesperson Muzzammil Aslam said on Saturday that sugar is not a "federal government" subject, and its price as well as crushing schedule is decided by provinces, adding that Sindh has "defaulted on its obligation".

Aslam added that the Khyber Pakhtunkhwa government asked for sugar, and will now be getting it from the federal government.

"Sindh has neither asked for the sugar stocks nor does it seem to want any help from the centre," said Aslam, as he addressed a press conference in Karachi.

"Similarly, the recent price increase, driven by speculation, is also a provincial subject. It is the provincial authorities that look out for these. Punjab has recently taken action on it. We have not seen any such action in Sindh."

Aslam's remarks come amid the recent hike in the price of sugar that has added to inflationary pressure in the country.

"The Punjab government is providing sugar to domestic customers in utility stores at Rs85 per kg, while sugar is available in Sasta Sahulat Bazaars at Rs90 per kg."

The official informed that the federal government currently has around 130,000 tonnes available, which translates 22 days' worth of supply.

Meanwhile, Aslam said sugar mills in Sindh are still not operating, whereas in Punjab they will become operational by November 15, said Aslam.

"You (journalists) need to ask these questions. The sugar crisis will trickle down. If the farmers do not get paid on time, then the next crop would be affected as well."

Earlier, Prime Minister Imran Khan had said that sugar price went up to Rs140 per kg because three sugar mills operating in Sindh were closed and the subsequent hoarding of sugar by mills in Punjab.

Sugar tends to become an acute issue in Pakistan where provinces and the federal government tend not to see eye-to-eye on various topics.

Govt urged to formulate 'realistic' long-term sugar policy

Experts suggest that the government needs to formulate a realistic long-term sugar policy in consultation with all the stakeholders to safeguard the interests of both farmers and sugar millers and to provide growers a level-playing field

They argue that the main beneficiaries of any price increase are always the millers or processors, adding that fixing sugarcane's support price very late hurts the growers as well.

The fixing of the support price has remained a bone of contention between sugar mills and growers for years. Additionally, they argue that the sugarcane crushing season begins very late.

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