National Assembly committee unanimously clears govt of any wrongdoing sugar crisis

[Naveed Yaseen]

By Aftab Maken

ISLAMABAD: Giving clean chit to the Trading Corporation of Pakistan (TCP)-an attached department of the ministry of commerce, chairman of the committee, Khurram Dastgir with the consent of all the members of National Assembly’s Standing Committee on Commerce on Tuesday were of unanimous view that the neither the TCP or any government functionary were responsible for delay in the sugar imports.

TCP chairman, Saeed Ahmed Khan in its presentation to the committee said that the TCP received ECC decision of Feb 3, 2009 for importing 200,000 tons clearly stating, “the said imports should be staggered but in manageable lots.”

The TCP only deferred one of its placed tenders for importing the commodity from foreign buyers as the Sugar Advisory Board, headed by federal minister for Industries & Production, Maznoor Ahmed Wattoo advised that the TCP should also consider buying the quantity from the local millers after matching the price but eventually the tender opened in April was finalized in May at the same price, TCP chairman added.

Replying to a number of queries raised by the parliamentarians for not implementing ECC decision of importing 200,000 tons guar in letter and sprit thus causing shortage of the commodity before month of Ramazan, secretary commerce Suleman Ghani told the committee that the corporation is only responsible for supplying the demand of USC and CSD of armed forces and to maintain a buffer stock of a limited quantity. Otherwise, it has nothing to do with the market operation, secretary commerce added.

Whenever the federal government directed the TCP for release of sugar stock, Ghani further told that the corporation acted within no time for releasing the stock either to the USC or in the open market and always has a balance stock at its warehouses.

Out of the total four tenders of 200,000 tons sugar import, secretary said that the quantity so far arrived is 83,283 tons with remaining balance of 63,283 tons after releasing 10,000 tons lots of sugar to the open market and government of Balochistan. The weighted average price of imported sugar is Rs 58 per kg while the imported sugar price ranges from Rs51 to 74 per kg.

To another query for averting any crisis in the next year, secretary commerce informed the committee that the ECC of the cabinet has directed the TCP to enhance the buffer stock to one million tons both with basket of local and imported stocks.

Secretary commerce further told the committee that the government either chose the vulnerable consumers or voiceless farmers to protect them through various interventions. He further warned, “If cane intervention price is fixed around Rs100 per 40 kg it will be unwise to manage the sugar price well below Rs40 per kg.”

The total stocks of sugar both imported and local procurement on Sept 30 will be 235,935 tons and after releasing nearly 40,000 tons to USC in October and November, the net balance stock of the commodity will be 155,723 tons before the start of next crushing season, secretary said.

About rise of sugar prices, Ghani said, “There are many theories about it but none knows the real situation.”

To another query of penalty clause, secretary commerce informed the committee that the ministry is amending the penalty clause by market price after including 25 per cent penalty.

TCP chairman informed the committee that the corporation entered an agreement with 42 sugar mills for buying the sugar from them and were stocked at their warehouses and the TCP still had 53,094 tons sugar at 13 sugar mills.

To an allegation of Kashmala Tariq that the remaining 39 sugar mills who did not sell the commodity to the TCP at relatively low price are selling the commodity at high price and dictating the market and demanded the committee to probe the matter.

Replaying to Kashmala’s allegation, secretary commerce said that it is the mandate of his ministry.

Summing up the debate on sugar crisis, chairman committee, Khurram Dastgir with the consent of all the members directed the other concerned departments like ministries of Finance, Industries & Production and Food & Agriculture to have a joint sitting for further deliberations and solution of the sugar crisis in near future.

APP adds: Trading corporation of Pakistan (TCP) on Tuesday informed the National Assembly’s Standing Committee on Commerce that it had received only 83,283 metric tons of sugar to- date out of the 200,000 tons that the ECC had ordered in February 2009.

The Standing Committee met here under the Chairmanship of engineer Khurram Dastgir Khan, MNA, Federal Minister for Commerce Makhdoom Amin Fahim was also present.

The Committee has censured TCP for aggravating the sugar crisis through a grievous delay in importing required sugar stocks, thereby inflicting severe hardship on people and causing a loss of millions of dollars to the government.

TCP was complicit in collusion between powerful government figures, hoarders and mill owners to fleece the poors, said a statement issued by the National Assembly Secretariat.

The members pointed out that all efforts of the government to provide sugar at low cost have failed dismally and millions people are queuing up all day for sugar, which is not to be found in most Utility Stores.

The Committee reprimanded TCP for a two-month delay in finalizing a sugar tender of 50,000 tons that TCP had opened in April 2009.

Secretary Commerce ascribed responsibility for delay on a price verification committee comprising of himself. Secretary Industries and Secretary MINFA.

The Committee found the Ministry response to be inadequate and decided to form a sub-Committee to investigate this issue more thoroughly.

The Committee will continue discussion on the sugar crisis in the next meeting.

The Committee also discussed the Insurance (Amendment) Bill 2008 and recommended unanimously to the Ministry that the law should be amended to bring re-insurance brokers under government regulation.

The Committee heard from stakeholders private insurers, state- run insurance companies and Pakistani re-insurance brokers.

The Secretary Commerce informed the Committee that the Ministry intended to withdraw the said bill in the next session of the National Assembly.

MNAs Mrs. Yasmeen Rehman, Nawab Abdul Ghani Talpur, Mrs. Tahira Aurangzeb, Ms. Shireen Arshad Khan, Mrs. Kashmala Tariq, Mrs. Jamila Gillani, Chaudhry Iftikhar Nazir, Nauman Islam Sheikh, Haji Muhammad Akram Ansari, Hamid Yar Hiuraj and Iqbal Muhammad Ali Khan attended the meeting.

http://www.thenews.com.pk/daily_detail.asp?id=197412