The millers failed to get a stay order from the court while cautious dealers refused to place fresh orders.—Photo by APLAHORE: Uncertainty over price gripped the sugar market on Monday because the millers failed to get a stay order from the court while cautious dealers refused to place fresh orders.
Market analysts maintain that if things do not get cleared in next two to three days, the supply and price situation may worsen.
According to them, there has to be either a stay against the LHC order or the provincial government should make its policy on price clear.
The present Punjab government sugar policy, according to a miller, is breeding confusion. He says the government has promised to seek a clarification from the LHC about those dealers who have already purchased sugar at higher rate. This clarification is yet to come.
Similarly, he says the old price of Rs47 a kg is till being allowed but no one knows for how many days it is permissible.
To further add to the confusion, he says the Punjab government had decided to approach the federal government to convince or force other federating units to reduce their price so that sugar from Punjab is not smuggled to other provinces.
‘This process is totally uncertain because it has heavy political undertones. The federal government is hardly expected to bailout Punjab so quickly, and any delay will only hurt the market. Even if other provinces agree to reduce sugar price, the way forward lies through the Supreme Court, which is totally independent,’ he said.
Moreover, the miller says the government is hoping for a stay order against the LHC decision which did not come on Monday.
‘All these factors are keeping sugar market volatile because the dealers do not know what will be the sugar price in next few days and, hence, are not placing orders.’
Rao Akram of the Lahore Retail Merchants says the Eidul Fitr is only two weeks away when sugar demand increases due to higher use of sweets, confectionary items and beverages.
‘Precisely for this reason, things should get clear either way and the market should settle down’, he said.
He says the Punjab government is yet to notify new price but its magistrates have already started booking retailers for violating LHC-fixed price.
‘No one really knows what is going on. It looks to be free for all when it comes to so-called market economy.’
The dealers say they have already been stung twice. They purchased sugar at ex-mill price of Rs52 per kg, when the government reduced price to Rs49.75 per kg.
They bought it at the new price when the price was lowered further to Rs45, causing a loss of millions of rupees to dealers.P.
Market analysts maintain that if things do not get cleared in next two to three days, the supply and price situation may worsen.
According to them, there has to be either a stay against the LHC order or the provincial government should make its policy on price clear.
The present Punjab government sugar policy, according to a miller, is breeding confusion. He says the government has promised to seek a clarification from the LHC about those dealers who have already purchased sugar at higher rate. This clarification is yet to come.
Similarly, he says the old price of Rs47 a kg is till being allowed but no one knows for how many days it is permissible.
To further add to the confusion, he says the Punjab government had decided to approach the federal government to convince or force other federating units to reduce their price so that sugar from Punjab is not smuggled to other provinces.
‘This process is totally uncertain because it has heavy political undertones. The federal government is hardly expected to bailout Punjab so quickly, and any delay will only hurt the market. Even if other provinces agree to reduce sugar price, the way forward lies through the Supreme Court, which is totally independent,’ he said.
Moreover, the miller says the government is hoping for a stay order against the LHC decision which did not come on Monday.
‘All these factors are keeping sugar market volatile because the dealers do not know what will be the sugar price in next few days and, hence, are not placing orders.’
Rao Akram of the Lahore Retail Merchants says the Eidul Fitr is only two weeks away when sugar demand increases due to higher use of sweets, confectionary items and beverages.
‘Precisely for this reason, things should get clear either way and the market should settle down’, he said.
He says the Punjab government is yet to notify new price but its magistrates have already started booking retailers for violating LHC-fixed price.
‘No one really knows what is going on. It looks to be free for all when it comes to so-called market economy.’
The dealers say they have already been stung twice. They purchased sugar at ex-mill price of Rs52 per kg, when the government reduced price to Rs49.75 per kg.
They bought it at the new price when the price was lowered further to Rs45, causing a loss of millions of rupees to dealers.P.