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KARACHI: The sugar millers on Tuesday warned the government of worst sugar crisis in the country, requesting the government to keep an eye on the smuggling of the commodity to Afghanistan. According to Pakistan Sugar Mills Association (PSMA), sugar mills have decided not to hold the commodity within the processing units as buffer stock to avoid possible operation by the government against them.
The millers released the entire stocks in the wholesale market from where it was reportedly smuggled to the neighbouring country or hoarded for profiteering. Sources told Business Recorder the fresh sugar stocks of white refined sugar was either smuggled to Afghanistan where it was sold at Rs 140 per kilogramme or stored in the godowns of some big wholesale markets of the country.
The profiteers know that the fresh sugar crisis in the country would start in the middle of 2010 and hence started hoarding sugar to make quick buck during crisis, they said. They alleged the refined sugar was exported to Afghanistan in the guise of "gur" (raw sugar) where it was sold at much higher prices than in Pakistan. "The Supreme Court had banned the movement of raw sugar due to crisis in the country and asked the government for immediate steps to avoid its smuggling to the neighbouring countries, but to no avail," the sources added.
They said sugar millers have brought entire sugar stocks in the market to clear bank dues and avoid any action from the government during expected sugar crisis. It is also reported that the profiteers have stocked the commodity in godowns. "Sugar millers are afraid of unnecessary action by the Competition Commission of Pakistan (CCP) on charges of hoarding."
They said sugar mills are facing an acute shortage of sugarcane and are working below their sugar producing capacity. "The commercial players offered comparatively much higher prices to the growers and purchased huge sugarcane stocks to manufacture raw sugar for export," they said.
Talking to Business Recorder, Iskandar M. Khan Chairman PSMA confirmed the reports of illegal export of sugar to Afghanistan and its hoarding within the country. He requested the government to take immediate steps against the elements involved in this act.
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