According to the press report the economic coordination committee (ECC) of the cabinet directed the Trading Corporation of Pakistan to immediately supply about 450,000 tons of sugar stock in the market to check the rising sugar prices. I dont think this decision of the government will force the sugar mafia to reduce its prices. This is because the TCP will conduct the sale through 5 tenders (of 10,000 metric ton each) through sealed bidding. This sugar will be purchased by the sugar mills owners or by their dealers and they will not be likely to sell at lower prices than the prevailing market price of Rs. 96 per kg.
If the government really wants to help the consumer it should supply all this sugar to the retailer outlets and utility stores on the cost price which is about Rs. 55 per kg. The government also launch a campaigned advising the people to halve their consumption of sugar and sweet products.
It is now a known facts that the majority of sugar mills in the country are owned by politicians or their friends and our politicians are only interested to have votes from people to become their representatives and then to protect the interest of those who provide them the funds for the elections. Guaranteeing the welfare of the people is mere lip service. If the government stops its involvements in the sugar business and allow it to function as per the free market mechanism by allowing the free import of sugar and by withdrawing government protection to the sugar mills which has been exploiting the consumers and manipulating the prices at their own free good will. The question is who will bell the cat when the cats are sitting in the national assembly.
S T HUSSAIN
Lahore