NA panel to probe rising prices, identify ‘connections’ between politicians, bureaucrats, and sugar industry

ISLAMABAD: The National Assembly Standing Committee, led by Jawed Hanif Khan, has launched an investigation into the sharp rise in sugar prices, focusing on its export and import trends and identifying the key beneficiaries. 

A sub-committee has been formed to look into the issue, particularly focusing on sugar exports and the duty- and tax-free imports that are believed to benefit specific stakeholders. 

The committee chairman emphasised that the sugar crisis appeared suspicious, urging an investigation and the initiation of criminal proceedings if any wrongdoing is discovered. 

He pointed out that there seemed to be a connection between politicians, bureaucrats, and the sugar industry, a view supported by both treasury and opposition members. 

The committee plans to summon relevant ministries and organisations for further scrutiny.

On the other hand, the sugar crisis in Punjab worsened due to a deadlock between sugar mills, government officials, wholesale dealers, brokers, and retail merchants. The Retail Merchants Association has halted all sugar purchases from mills, instructing retailers to sell their current stock and stop further sugar sales. Retailers with excess stock have been advised to distribute it to smaller shopkeepers to clear inventory.

The association has warned of a significant sugar shortage next week, with prices potentially reaching Rs220 per kg. Retailers have argued they cannot sell sugar bought at Rs176-180 per kg for Rs173 per kg, as mandated by price controls.

On Monday, in a sweeping crackdown against profiteering in Islamabad and Rawalpindi, authorities arrested at least 19 shopkeepers for selling sugar at rates above the government’s notified prices. The action was launched on the orders of Deputy Commissioner (DC) Islamabad, Irfan Nawaz Memon, as part of a broader initiative to curb inflation and enforce market discipline.

On Sunday, the Punjab government instructed all deputy commissioners to ensure compliance with the newly notified sugar prices. The directive, issued by the Office of the Director General (Food)/Cane Commissioner, follows federal concerns over reported violations of price regulations in the province.

Last week, the Federal Ministry of National Food Security and Research fixed the ex-mill price of sugar at Rs165 per kilogramme, marking an increase of Rs25 from the fixed price last June.