February 08, 2010

By Irfan AligiKARACHI: The citizens of Karachi are compelled to pay Rs 70 for a kilogramme of sugar as the government has completely failed in bringing the prices of the commodity under control.

Wholesalers Grocers Alliance Chairman Anees Majid said that traders could only procure 615 tonnes out of 1,170 tonnes of sugar for which 25 selected traders have paid Rs 40.5 million in advance.

Each trader was allowed to buy a stock of 50 tonnes for Rs 1.8 million paid in advance.Majid said the government had increased the support price of sugarcane from Rs 80 per mound to Rs 102, which went on escalating and it now ranges between Rs 170 and Rs 190 per mound.

The prices of certain agriculture raw materials have also increased, affecting the cost of input, he claimed.

He further said that due to the high profit of sugar business amid the ongoing crisis, many businessmen have procured tonnes of sugar and confined it in their private godowns to sell it for higher rates later.

He said the crisis would never end unless the government draws a smooth policy for sugar production, stock keeping and sale to the common man.

Last November, it was claimed that the citizens would buy sugar at Rs 40 per kg as a stock of 1,250 tonnes was procured from a local sugar mill located in Thatta district.

This was announced in the light of a meeting of certain officials including the Karachi District Coordination Officer Muhammad Javed Hanif khan and traders’ representatives with the cane commissioner, who had also vowed that arrangements for additional 15,000 tonnes of sugar were finalised.

Thus the total amount of the then announced sugar stock was 16,250 tonnes.It was claimed that 1,250 tonnes stock of sugar was being loaded onto trucks that would reach the city’s trading centre.

The traders’ representatives had also claimed that they had booked that stock of sugar for Rs 36 per kg, which they would pass on to wholesalers at the rate of Rs 36 while the consumers would pay Rs 40 per kg.

The wholesalers had claimed that they had bought the stock of sugar for Rs 36 per kg and would sell it to retailers at the rate of Rs 38 per kg.

The consumers would buy sugar from the retailers for Rs 40 per kg. But that stock of sugar never arrived in the city.

The Utility Stores Corporation made life more miserable for the common man by putting a condition that those who wanted to buy sugar would have to spend Rs 500 to buy other commodities as well.

Meanwhile, influential people are grabbing the sugar stocks from utility stores and selling them at higher rates.

LINK: http://dailytimes.com.pk/default.asp?page=2010\02\08\story_8-2-2010_pg12_4