LHC stay orders causing ‘surge’ in sugar prices

[Peaceful Civilian]

Report reveals nexus between sugar millers, brokers is also to be blamed for price escalation

LAHORE:
In a confidential report submitted to the Punjab government, it has been exposed that the skyrocketing sugar prices are a direct result of the stay orders issued by the Lahore High Court (LHC).

The report revealed that the LHC's judicial injunctions paved the way for an alarming increase in the cost of sugar.

According to the report, the injunctions issued by Justice Shahid Karim and Justice Anwar Hussain of the LHC on May 4, 2023, and Aug 1, 2023, allowed for inflation and profiteering by sugar mills, brokers, and speculators.

The report raised questions about the responsibility of price escalation and noted that most cases related to sugar mills had been decided in favour of the mills and against the general public and farmers in the court of Justice Shahid Karim, prompting concerns about a potential nexus between mills and brokers.

It stated that the sugar prices were being inflated artificially, allowing mills, brokers, and speculators to make exorbitant profits.
The sugar changed hands while lying in the mills and its price was skyrocketing like anything.

Each new buyer added up from Rs5 to Rs20 per kg. The process was supported by the sugar mills as their sugar too got costlier without spending even a single penny, the report added.

The situation was worsening day by day, with the fear that sugar prices would continue to rise.

The report suggested that urgent measures were needed to address this crisis, including vacating the stay orders at the earliest, detaining speculators and brokers who had manipulated the sugar market, and conducting thorough investigations into sugar speculation rackets.

Failure to take immediate action threatened to plunge the country and the province further into crisis.

“The stay orders need to be vacated at the earliest otherwise the country and the province will plunge further deeper into crisis. Without notified price, the Food Dept and Dist Admin cannot check hoarding or control prices.”

The report concluded by pointing out that the responsibility for the price escalation lied with the courts and the nexus between sugar millers and brokers.

It called for the immediate vacation of the stay orders, recommending detaining speculators and brokers under the Maintenance of Public Order (MPO).

If action was not taken swiftly, the nation and the Punjab province would face further crisis as the price of sugar continued to rise.

The government must intervene urgently to control hoarding and stabilise prices.

Additionally, the intelligence agencies should be mobilised to uncover speculators and brokers involved in this racket.

The situation called for decisive measures to prevent a deeper crisis and mitigate the impact on consumers and farmers.

https://tribune.com.pk/story/2434267/lhc-stay-orders-causing-surge-in-sugar-prices

 

[maithil]

Hahaha.. Punitive administrative measures never work in Supply side problem of staple food item. Situation will improve for couple of months and become infinitely worse after that. I guess when you have danda, every issue has to be solved using it.