Wednesday, January 27, 2010

The Story of Sugar Crisis in Pakistan

It is the free market system that has created all the confusion or rather provided an opportunity to some to make huge money. Here is the excerpt from an article on the subject.

"In the 1980s, the ministry of industries used to calculate sugar prices on the basis of cane support price. Dr Mahboob-ul-Haq, the then minister for commerce and industries, passed on this responsibility to the APCom. Until recently, sugar prices were determined by it.

While sugarcane prices were approved by the cabinet, these were fixed by the ECC presided over by the finance minister. The system was working satisfactorily till such time the so-called ‘free market’ system was adopted under the influence of international financial institutions.

This system has created confusion in marketing of sugar/sugarcane, wheat, rice/paddy, cotton, etc. Such decisions should be left to local experts who are equally, if not better, than their foreign counterparts."


Pakissan.com; Pakistan's Largest Agri web portal, Connecting Agri
Community for Better Farming

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