Latest news with #PakistanSugarMillsAssociation
Business Recorder
01-05-2025
- Politics
- Business Recorder
DGTO issues injunctive order against PSMA Central elections
ISLAMABAD: The Director General Trade Organizations (DGTO) has issued injunctive order against the elections of Pakistan Sugar Mills Association (PSMA) Central on the complaint of PSMA (Khyber Pakhtunkhwa), disallowing the current body to function. According to the order signed by the DGTO, Bilal Khan Pasha, a petition of April 18, 2025 was lodged by the Complainant Rizwan Ullah Khan (Chairman, KPK Region and member of the Central Executive Committee of the Pakistan Sugar Mills Association) challenging the legality of an election conducted by the retired Executive Committee (2022-24). Asim Ghani Usman and eleven others were made party in the complaint. The order states that copies of the complaint and a notice of hearing for April 29, 2025 at 1400 hrs were dispatched by courier and e-mail on April 23, 2025, with delivery confirmations on file. Zaka elected PSMA-Centre chief On April 29, 2025 the Complainant and counsel attended; no Respondent or authorised representative appeared and no written reply has been received. After the hearing concluded, the office received a letter of April26, 2025 from Taimoor Aslam Khan, Advocate Supreme Court, on behalf of the Respondents. Relying on an appeal pending before the Islamabad High Court (CMA No 02 of 2025 in an appeal under Section 21(4) TOA 2013), the letter sought an adjournment sine die on the ground that the present dispute is sub-judice. The DGTO said that the letter, however, does not explain the Respondents' failure to appear on April 29, 2025 despite due service, adding that the Complainant has prima facie established urgency and potential irreparable harm, as the Respondents are reportedly functioning as office bearers of PSMA on the basis of an election declared illegal in the complaint. The DGTO further stated that the respondents' failure to appear or respond to correspondence raises concerns about procedural fairness and compliance with statutory obligations under the Trade Organisations Act, 2013 and Rules, 2013. 'Allowing such actions to proceed before adjudication risks irreparable prejudice, possible third-party complications, and frustration of any eventual relief,' the Order said. The Respondents' silence and non-attendance, despite duly-served notice, justify interim protection of the Association's affairs. The interim order of January20, 2025 of the Islamabad High Court merely declares that 'any election held pursuant to the impugned order shall be subject to the final outcome of the instant appeal.' It neither stays the working of PSMA nor restrains this office from exercising its statutory powers under Section 14 of TOA 2013 regarding events that transpired after 30 September 2024. Consequently, the plea to adjourn these proceedings sine die is misconceived and is hereby declined. Copyright Business Recorder, 2025
Express Tribune
29-03-2025
- Business
- Express Tribune
Dar urges PSMA to ensure Rs164 per kg price
Deputy Prime Minister and Foreign Minister Senator Ishaq Dar on Friday reaffirmed the government's commitment to actively monitor supply and regulate sugar prices nationwide to ensure market stability and affordability for consumers. Chairing a meeting on the sugar situation in Pakistan, the deputy PM reviewed compliance with the committee's agreement reached earlier and expressed satisfaction with the downward trend in prices. He directed Pakistan Sugar Mills Association (PSMA) to ensure full compliance with the agreement whereby retail prices are at or below Rs164 per kg throughout the country.
Express Tribune
25-03-2025
- Business
- Express Tribune
PSMA blames Satta mafia for price hike
Listen to article A Pakistan Sugar Mills Association (Punjab Zone) spokesperson stated that the artificial surge in sugar prices, driven by the Satta Mafia, profiteers, and hoarders, has been successfully reversed following the government's decision to set ex-mill and retail price benchmarks. In a statement, he said a General Body meeting of PSMA, held on Tuesday, ruled out any sugar shortage, assuring that stocks are sufficient to meet consumer demand. He accused Karyana Merchants, the Satta Mafia, and hoarders of spreading baseless rumours to inflate prices. However, sugar prices have now returned to the government-set benchmark, which was agreed upon by the industry in the best interest of consumers. This price will remain in effect until April 19. Additionally, the industry has provided discounted sugar at Rs130 per kg at 274 stalls during Ramazan. He dismissed reports linking price hikes to sugar exports as completely false. The industry has urged the government to adopt a two-tier pricing mechanism, distinguishing between industrial/commercial consumers (80% of total consumption) and domestic consumers (20%). It proposed that the government subsidise sugar for low-income households, using programmes such as the Benazir Income Support Programme or other targeted interventions.
Express Tribune
20-03-2025
- Business
- Express Tribune
Millers to benefit from Rs19/kg hike in sugar price
The government on Wednesday set the retail price of sugar at Rs164 per kilogram, which is 13% higher than the price set when the export of 600,000 metric tons of sugar was allowed. This adjustment benefits millers by enabling them to reap double bonanza, earning higher revenues from both local and international markets. The decision was taken by a 10-member committee led by Deputy Prime Minister Ishaq Dar. The committee determined the new ex-factory and retail prices of sugar after negotiations with the Pakistan Sugar Mills Association (PSMA), an entity accused of operating as a cartel by the nation's antitrust watchdog.
Express Tribune
19-03-2025
- Business
- Express Tribune
Govt sets sugar price at Rs164/kg
Listen to article The government on Wednesday fixed the retail price of sugar at Rs164 per kilogram, which is 13% higher than it had set at the time of allowing the export of 600,000 metric tonnes of sugar, giving millers the bonanza of earning higher revenues from local and overseas markets. The decision was taken by a 10-member committee led by Deputy Prime Minister Ishaq Dar. The committee fixed new ex-factory and retail prices of sugar after negotiating with the Pakistan Sugar Mills Association (PSMA) – the entity that is accused of operating as a cartel by the nation's antitrust watchdog. The committee also fixed the ex-factory price at Rs159 per kilogram in consultation with the PSMA – also higher by Rs19 or 13.5% compared to the earlier maximum threshold. The deputy prime minister announced the decision through X – the social media platform. Dar said that the sugar retail price will be Rs164 per kilogram and the ex-mill price will be Rs159 for one month. The prices are higher by Rs19 per kg or over 13%. The Rs1 increase in price gives Rs2.8 billion in additional benefit to the sugar mills. The decision marks a departure from the government's earlier action of fixing the ex-factory price at Rs140 and the retail price at Rs145 per kg when it had allowed the export of sugar last year. The Rs19 per kg benefit to the millers is contrary to the earlier decision that sugar prices would remain unchanged despite the exports. On Monday, the government had told the millers that their production cost, inclusive of taxes, was Rs154 per kg, but the millers claimed that it was Rs174. The per-kilogram price of sugar has shot up to an average of Rs172 as of last Friday – Rs27 per kg higher than the same week of the last year, according to the Pakistan Bureau of Statistics. The prime minister had set up the Dar-led committee after average sugar prices jumped by Rs10 within a week and Rs27 compared to last year, according to the national data-collecting agency. It also reported that the maximum national price skyrocketed to Rs180 per kg in Karachi and Islamabad. A key reason behind the increase in sugar prices was Prime Minister Shehbaz Sharif's decision to allow sugar exports. The PBS on Monday stated that the country exported 757,779 metric tonnes of sugar from July to February of this fiscal year. Compared to last year, when only 33,101 metric tonnes of sugar had been exported, there was a 2,190% increase in exports in this fiscal year, the data showed. In terms of value, the exporters earned $407 million during the July-February period, which was also $386 million or 1,831% higher than the previous fiscal year, the PBS data showed. Dar said that a sub-committee has also been constituted under the chairmanship of Minister of Food Rana Tanveer Husain. He said the sub-committee would review sugar prices and come up with recommendations. The deputy prime minister said that sugar would still be sold at Rs130 per kg at 274 special bazaars being set up across the country. He said that there would not be any shortage of the commodity. He added that sugar mills would start the crushing season from November this year, and in case of a delay, action will be taken against them. However, such warnings had also been given in the past. The government's decision to fix sugar prices is likely to create distortions in the market, and is also against the advice of the Competition Commission of Pakistan – the antitrust watchdog. The government fixed the price in consultation with the PSMA, which is accused of being a cartel. The CCP said this week that it has been actively working to curb cartelisation in the sugar industry. In 2020, the CCP launched an inquiry into the sector, which revealed that sugar mills were prima facie engaged in price-fixing and controlling supply through coordinated actions facilitated by the PSMA. The antitrust watchdog said that in August 2021, the CCP imposed a record Rs44 billion in penalties on sugar mills and the PSMAone of the highest fines in its history. However, the decision was challenged in courts, and stay orders were issued by the Sindh and Lahore High Courts, as well as the Competition Appellate Tribunal (CAT). This has delayed the recovery of penalties, it added. Its first inquiry in 2009 found prima facie evidence of PSMA's involvement in price-fixing and the manipulation of production and supply quotas. Over the years, the CCP has issued multiple policy notes and recommended the federal and provincial governments to reduce market distortions. The CCP said that currently, about 127 cases related to sugar cartelisation are pending in various courts, including 24 in the Supreme Court, 25 in the Lahore High Court, six in the Sindh High Court, and 72 in the Competition Appellate Tribunal.
