Web Desk
ISLAMABAD
While price manipulation by the private sector is against the law, the Competition Commission of Pakistan (CCP) has pointed out that the recent move by the Punjab government to fix the sugar price too should be avoided.
The commission in its Policy Note, issued on Saturday, advised the government to deregulate the sugar industry to promote free trade mechanisms.
Referring to the Punjab government circular of fixing of the maximum retail price of sugar at Rs85 per kg, the CCP observed that since Punjab is the only province to set a rate ceiling, one immediate effect could be that sugar could move to other provinces where no price ceiling is in place and it can command a higher market price.
The CCP has pointed out that the price control could also encourage hoarding by suppliers or impulsive buying by consumers, especially ahead of Ramazan, both of which will likely result in shortage in the market and even higher prices for consumers.
However, the commission feels that the promulgation of the Sugar (Supply-Chain Management) Order 2021 by the Punjab Government to prevent hoarding of sugar by the mills is a step in the right direction.
