The Competition Commission of Pakistan (CCP) is encountering delays in recovering a Rs 44 billion penalty imposed on the sugar cartel, as 127 pending petitions in various courts across the country continue to impede progress.
As reported by BR, the CCP faces hindrances in the execution of penalties due to stay orders issued by the courts. Presently, there are 127 pending sugar cases distributed among different courts, with 24 in the Supreme Court, 25 in the Lahore High Court, 6 in the Sindh High Court, and 72 in the Competition Appellate Tribunal.
Since July 2023, the Competition Appellate Tribunal has been non-functional, further complicating matters.
Sources indicate that the country’s economic landscape has long grappled with market power concentration and abuse across various sectors, with the sugar industry serving as a notable example. The CCP has faced resistance from influential players in the sugar industry.
Notably, in Pakistan, approximately 84 sugar mills produce 6 to 8 million metric tonnes of sugar annually from 80 million tonnes of cultivated sugarcane over one million hectares of land. Despite this capacity to cater to the needs of 235 million Pakistanis, the nation regularly faces sugar shortages, while the sugar industry continues to accumulate significant profits.
Sugar prices are impacted by cartels, smuggling, and hoarding. The government has recently taken steps to address these issues through the Special Investment Facilitation Council (SIFC), aiming to reduce sugar prices and ensure a consistent supply.
The pricing of sugar deviates from typical supply and demand principles, as powerful mill owners manipulate the system to raise prices. This manipulation often involves pressuring the government to permit sugar exports around mid-year, citing excess stocks.
Historically, sugar mills have reaped billions through export subsidies granted for sugar exports, with the subsidy being the difference between local and international prices. However, allowing sugar exports contributes to domestic shortages, exacerbated by hoarding and smuggling, leading to increased prices.
Govt officials take bribes to allow such “mid year”exports and plenty of bribery involved by govt officials in smuggling to Afghanistan. Price of cane is also artificially set by provincial govt’s and price of sugar is set by federal govt. why not just make it a free market? No price setting and anyone can export them and earn some dollars for the country?
Because govt officials are complicit in the theft they don’t allow this.