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Pakistan Sugar mills association along with JDW group manipulate sugar price: CCP report

Web Desk 09:39 AM | 23 Oct, 2020
Pakistan Sugar mills association along with JDW group manipulate sugar price: CCP report

ISLAMABAD – The Competition Commission of Pakistan (CCP) has recommended issuing notice to Pakistan Sugar Mills Association as they cartelise and used lobbies for manipulating stock positions.

Raids on the PSMA and JDW group sugar mills suggest these anti-competitive activities have continued since 2010.

The enquiry has found multiple instances where the Pakistan Sugar Mills Association (PSMA) is acting as a front runner for cartelisation in the sugar industry.

It appears that PSMA and its member mills sought to keep prices stable by controlling the supply of sugar available in the domestic market. Sugar mills with the support of PSMA have managed to adopt a strategy whereby based on coordination of stock positions calculations on export quantities were made.

Data suggests that the price of sugar linked with the exports directly.

It was found that the benefit accumulated to mills on account of rising in domestic prices due to exports alone was approximately Rs40 Billion in revenue during the period February 2019 to September 2019. It would be relevant to add that an amount of Rs29.22 billion was also paid as a subsidy.

PSMA Punjab created a zonal division for coordination on sales, stock positions and production quota appears to be none other than monitoring the position with respect to each mill to control local sales. 

Commercially sensitive stock information was regularly shared between mills which allowed them to set current and future prices for sugar. The recent hike in sugar prices appears to be the direct result of misreporting in sugar stock positions) that led to a decision to delay sugar imports. 

When the issue of mismatch in-stock positions was raised, at Sugar Advisory Board (SAB), PSMA denied that it collects stock information and found evidence to the contrary.

The enquiry report observed that the decision not to import in a timely manner caused a rise in sugar prices between July to September 2020 by Rs11.6 per kg.

The information available with CCP also seems to indicate that during crushing season 2019-20, 15 sugar mills in the Punjab Zone ceased crushing activities on the call of the association.

Now the CCP will issue a show-cause notice to all sugar mills and PSMA for initiating proceedings under CCP law and its final verdict is expected to be given in the next six months to a year period.

Web Desk
Web Desk

Daily Pakistan Global Web Desk

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KARACHI - Following are the foreign currency exchange rates for US Dollar, Saudi Riyal, UK Pound Sterling, U.A.E. Dirham, European Euro, and other foreign currencies in Pakistan open market on February 4, 2023 (Saturday).

Source: Forex Association of Pakistan. (last update 09:00 AM)

Currency Symbol Buying Selling
US Dollar ‎USD 279.9 283.2
Euro EUR 300.98 301.58
UK Pound Sterling GBP 337.01 337.71
U.A.E Dirham AED 75.14 75.44
Saudi Riyal SAR 73.55 73.85
Australian Dollar AUD 189 192
Bahrain Dinar BHD 712.72 720.69
Canadian Dollar CAD 200 202.2
China Yuan CNY 39.67 39.73
Danish Krone DKK 39.33 39.73
Hong Kong Dollar HKD 34.19 34.54
Indian Rupee INR 3.28 3.39
Japanese Yen JPY 2.5 2.54
Kuwaiti Dinar KWD 878 887
Malaysian Ringgit MYR 62.83 63.43
New Zealand Dollar NZD 173.25 175.25
Norwegians Krone NOK 26.79 27.09
Omani Riyal OMR 696.08 704.08
Qatari Riyal ‎QAR 73.62 74.32
Singapore Dollar SGD 204 206
Swedish Korona SEK 25.61 25.91
Swiss Franc CHF 291.69 294.19
Thai Bhat THB 8.15 8.30

KARACHI – The price of a single tola of 24-karat gold in Pakistan is Rs 205,200 on Saturday. The price of 10 grams of 24k gold was recorded at Rs175,930.

Likewise, 10 grams of 22k gold were being traded for Rs167,318 while a single tola of 22-karat gold was being sold at Rs 195,157.

Note: The gold rate in Pakistan is fluctuating according to the international market so the price is never been fixed. The below rates are provided by local gold markets and Sarafa Markets of different cities.

City Gold Silver
Lahore PKR 205,200 PKR 2,430
Karachi PKR 205,200 PKR 2,430
Islamabad PKR 205,200 PKR 2,430
Peshawar PKR 205,200 PKR 2,430
Quetta PKR 205,200 PKR 2,430
Sialkot PKR 205,200 PKR 2,430
Attock PKR 205,200 PKR 2,430
Gujranwala PKR 205,200 PKR 2,430
Jehlum PKR 205,200 PKR 2,430
Multan PKR 205,200 PKR 2,430
Bahawalpur PKR 205,200 PKR 2,430
Gujrat PKR 205,200 PKR 2,430
Nawabshah PKR 205,200 PKR 2,430
Chakwal PKR 205,200 PKR 2,430
Hyderabad PKR 205,200 PKR 2,430
Nowshehra PKR 205,200 PKR 2,430
Sargodha PKR 205,200 PKR 2,430
Faisalabad PKR 205,200 PKR 2,430
Mirpur PKR 205,200 PKR 2,430

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