A sub-committee of the National Assembly’s Standing Committee on Commerce has recommended full deregulation of the sugar sector to curb market manipulation and speculative practices. It also proposed reconstituting the Sugar Advisory Board, removing private sector representation from the body. The Standing Committee has reportedly adopted the report of the sub-committee and emphasized the need to identify individuals responsible for past decisions permitting sugar exports against national interest.
Elected representatives are alive to the feelings and difficulties of consumers in the face of repeated sugar crises in the country triggered by cartelization, absence of a proper policy framework and outdated farming practices and therefore, one hopes their recommendation for full deregulation of the sector is based on in-depth analysis of the situation. However, there is a need to exercise caution as private sector in Pakistan is not free from ills and there are numerous precedents that its self-centered practices added to the woes of the people. If the private sector was able to manipulate the public sector vis-à-vis export of sugar causing price-hike of the commodity in the local market, how can we expect that it will behave professionally in a deregulated environment? There is also a sense in the demand that deregulation should begin at the industry level, gradually dismantling cartelization while ensuring protection for vulnerable groups, especially the farmers and consumers. There are also issues like poor data management system and the lack of digital transparency in sugar stock and production, which need to be addressed by the Government. The Committee has done well by seeking an explanation from the Competition Commission of Pakistan (CCP) for its failure to curb cartelization in the sector and hopefully the Commission would become genuinely active for the purpose.
