The Punjab government will have to bear most of the subsidy on imported sugar despite having enough to last till the start of the next crushing season which is due by mid-November this year.
According to details, the Federal Government imported 200,000 metric tons of sugar to avoid its shortage in the country. It ordered the Punjab government to procure 150,000 metric tons of the imported subsidized sugar.
As a result, the Punjab government will have to pay an additional Rs. 1.52 billion out of the total subsidy of Rs. 4.35 billion because of the unilateral decision by the Federal Government. The remaining Rs. 2.83 billion subsidy will be equally shared by the KP and federal governments.
In pursuance of the order, the Punjab government is now holding talks with sugar dealers to procure and distribute the imported sugar across the province.
However, data from the Punjab Food Department shows that sugar mills in the province have 390,000 metric tons of sugar in their warehouses. Around 25,000 metric tons of sugar is also available in the market.
The data further reveals that Punjab’s monthly sugar consumption is around 250,000 metric tons. The available sugar stock in the province is sufficient to get it by the start of the next crushing season.
This is why Punjab Food Department did not forward any demand for the procurement of sugar to the Federal Government while the KP Food Department earlier this month informed the Federal Government that it had only 16 days of sugar available in the province.
Anticipating a shortage of sugar in the country, Federal Finance Minister Shaukat Tarin decided to import sugar and ordered KP and Punjab governments to directly procure the sugar from the port.
The Federal Minister had also notified to sell the 200,000 metric tons of sugar at a government-controlled rate of Rs. 90/kg at the government-controlled markets like Sasta Bazaar, Sahulat Bazaars, Sunday markets, and Utility Stores.
