Government Cracks Down on Sugar Hoarders to Control Inflation
The government's decision to import sugar has raised questions over its earlier approval of sugar exports, and the PSMA has recommended curbing sugar smuggling to manage stock shortages. The crackdown on sugar hoarders and price fixers is a step in the right direction, but the government needs to ensure that its policies are consistent and effective in controlling market inflation, particularly with regards to the sugar trade.
Prime Minister Shehbaz Sharif has ordered a nationwide crackdown on sugar hoarders and price fixers to stabilize market prices ahead of the upcoming months when sugar demand rises. A high-level meeting was held to discuss the issue, and a coordinated national action plan has been approved to take tough legal action against those involved in hoarding, cartelization, and artificial inflation.
The government has given full powers to agencies such as the FIA, IB, FBR, State Bank, and others to stop profiteering, improve supply, and restore public trust in the market system. Market inspections, surprise raids, and arrests will be conducted, with illegally stored sugar to be seized and those violating the law punished. This move is part of the government's plan to control market inflation and stabilize prices.
Meanwhile, the government has also decided to import 750,000 metric tonnes of sugar, which has sparked criticism over the decision's rationale. The move has driven domestic prices sharply higher, benefiting sugar millers, and has raised questions over the government's earlier approval of sugar exports. The Pakistan Sugar Mills Association (PSMA) has recommended curbing sugar smuggling and proposed a tolling policy for importing raw sugar to manage stock shortages.
The government's control over sugar trade contradicts its recently adopted free-market agricultural policies, and experts had earlier opposed the government's decision to export sugar, fearing it would jeopardise supply and raise prices for the entire population. The crackdown on sugar hoarders and price fixers is a step in the right direction, but the government needs to ensure that its policies are consistent and effective in controlling market inflation.