THE expectations of the people that the soaring prices of sugar might come down due to effective intervention of the government proved a mirage as it has officially legitimized higher prices by fixing the retail price of the commodity at Rs.164 per kilogram.
The decision to cap ex-mill and retail prices at Rs154-159 and Rs164 per kg, respectively for one month came following an agreement between the government and the sugar sector making mockery of the earlier commitment of the authorities concerned that ex-mill and retail prices would be maintained at around Rs.
140/145 a kilo in the domestic market.
The way the government has safeguarded interests of millers at the cost of consumers has substantiated the widely-held impression that sugar mafia was untouchable and that prices are always worked out to its advantage.
Strangely enough, the price that the government fixed on Wednesday amounted to affixing a stamp on price manipulation of the commodity by vested interests.
This is because at the time of making controversial decision of sugar export, pledges were made to stabilize the domestic prices of sugar at the prevailing level of Rs.145 per kilogram but now a benefit of Rs.19 a kilo has been given to millers over and above the windfall profit they made during export of seven hundred and fifty-seven thousand tons of sugar in a few months.
This is not for the first time that the decision to export sugar has led to a sharp increase in its prices for local consumers but the successive governments erred and failed to protect rights and interests of consumers.
All this is happening despite findings of the Competition Commission of Pakistan (CCP) that the sugar industry was acting like a cartel to manipulate prices.
The CCP has been doing its job but implementation is scuttled either by the executive or the judiciary through uncalled for stay orders.
The government also constituted a high level committee to look into the phenomenon but apparently it allowed its decision to be influenced by powerful lobbies.
No one should wonder if prices go up further (favouring millers) after one month when a sub-committee on the issue presents its report.
Ironically, there is no accountability of those who are fleecing farmers on the one hand and consumers on the other.
