Sugar Forensic Report: 'Politicians Together Looted Farmers?



Following the meeting of the federal cabinet, the government has published a forensic report on the sugar crisis. The forensic report has confirmed the FIA's preliminary investigation and blamed the owners of sugar mills, including government and opposition political figures, including Jahangir Tareen, for the rise in sugar prices in the country.
The report also blames government agencies such as the FBR, State Bank of Pakistan and the SECP for failing to meet their obligations.

The report said that after December 2018, the price of sugar rose sharply which continued till August 2019 and the price of sugar rose from Rs 51.6 to Rs 68.6.
Sugar mills and retail prices rose again after February this year. The Pakistan Sugar Mills Association staged a partial strike in January, which coincidentally came to light in the days leading up to the government's decision to investigate. Sugar mills were of the view that the supply of sugarcane has decreased and farmers have increased the rate, while according to the report, the production of sugarcane has increased by 67.7 metric tonnes or one per cent this year as compared to last year.

According to the report, the country's 88 sugar mills showed low sugarcane production and about a quarter of the production was kept secret. According to the commission, production was sufficient for the country's needs and there was no possibility of reduction and the increase in the price of sugar was not due to shortage of production.
The Chinese Commission's investigation and forensic report also revealed that all sugar mills continued to pay farmers a subsidized price of less than Rs 180 per quintal of sugarcane set by the government and paid them only Rs 140 per quintal. Gone The Cane Commissioner and the concerned Deputy Commissioner failed to stop the deprivation of the rights of the farmers

The forensic audit also found that sugar mills were increasing their costs to increase the price of sugar per kg, while the commission independently estimated the production cost of sugar per kg in accordance with IFRS principles. The cost was only Rs 38 per kg (for 2017-18) and Rs 40 per kg for 2018-19, while the sugar mills put the price at Rs 50 per kg.
Reaction of Jahangir Tareen
Reacting to the report, PTI leader Jahangir Tareen tweeted, "I am saddened by the false allegations. I have always done business transparently. The whole of Pakistan knows that I always pay full price to the farmers. I don't have two boxes and I pay all my taxes. I will answer every accusation and get rid of them

After the name of Federal Minister Khusro Bakhtiar's brother was mentioned in the report, the Ministry of Food Security was withdrawn from him and given to Syed Fakhr Imam while Khusro Bakhtiar was given the portfolio of Economic Affairs.
It may be recalled that Federal Minister for Railways Sheikh Rashid Ahmed had told Urdu News in an interview that "the FIA's forensic report on the flour and sugar crisis may be delayed by a few days instead of April 25."
After the FIA   report on the flour and sugar crisis came to light, the scope of affairs has become much wider, he said.
The recommendations of the forensic report called on the government to expand the scope of investigation and forensic audit and form investigation teams comprising officials of FIA, SECP, Anti-Corruption, FBR and SBP. I audit all sugar factories and take legal action in light of the results.
The report recommends that the NAB be asked to investigate the activities of public office holders and their close relatives and friends in Chinese factories which are punishable offenses under the NAB Ordinance. Also investigate looting in the name of subsidy from the national treasury.

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