LAHORE: The Cane Commissioner Punjab termed unprecedented increase in sugar prices a result of the trading of stocks sold by the mills but lying in the warehouse on behalf of buyers and directed on Monday the occupiers of sugar mills and buyers of such stocks to lift it within next three days.
Cane Commissioner Abdul Rauf also convened a meeting on Tuesday at his office to discuss the cost of production of sugar and fix its ex-mill prices under section 04 of the Punjab Foodstuffs (SUGAR) Order, 2023.
The cane commissioner has asked the Chairman of Punjab Sugar Mills Association (Punjab Zone) to give representation to his office on the said date with regard to cost of production.
It may be added that the Punjab food department in an order on July 28, 2023, had authorized the cane commissioner to fix the price of sugar, regulate storage, transport or distribution of sugar, prohibit the withholding from sale of sugar ordinary kept for sale, direct the occupier of the sugar factory to dispatch to the buyer, from warehouse of his factory or any other place of storage under his control, the sugar traded under futures contract, within such period of time, entering and searching the searching any premises or vehicles and can seek record of sugar from the millers, importers, dealers or his agent.
As per the directives, the cane commissioner may fix the ex-mill price of sugar after giving the representative body of sugar factories an opportunity of being heard.
Meanwhile, in another notification on Monday, the cane commissioner throwing light on the reports of unprecedented increase in the sugar price and stock counting and gathering of data by the deputy commissioners said that extraordinary increase in the prices of sugar was due to the stocks sold by the mills but lying in the warehouse on behalf of buyers were being traded to jack-up prices of sugar and fleece the public through undue and unjustified profits.
“The extraordinary increase in the prices of sugar warrants that such sold but un-lifted stocks be brought in the market to stabilize its prices,” said the notification.
The cane commissioner, therefore, asked the sugar mills and the buyers of sugar that buyers who bought sugar more than 15 days before the issuance of this order, shall lift the said sugar from the warehouse of the sugar mills within three days, no occupier of sugar factory shall allow keeping of sugar mentioned in sub-paragraph (1) above beyond three days and every occupier of sugar factory shall communicate to the Deputy Commissioner of the district concerned the future contracts for sugar.
The order further said that no buyer shall keep and no occupier of sugar factory shall allow to be kept sugar bought through future contract in the warehouse of the factory for more than 15 days.
“The order shall come into force immediately and shall remain in force till 30th November, 2023,” the notification concluded.
Copyright Business Recorder, 2023
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