Ham Sab Ek Hain

November 13th, 2009

Reproduced below are excerpts from a 48-page report of the Competition Commission of Pakistan on the sugar shortage currently on in Pakistan. The CCP was asked by the Supreme Court to file a report. Who/what does this reminds you of? One guess:

  • As will be revealed later in this Report, the Government of Punjab admitted during the hearings held by the Commission that no professional exercise was done to arrive at the cost of production-related data while fixing the “support price”. 
  • Punjab government’s crackdown adversely affected the supply-chain — trucks belonging to the USC were stopped from carrying sugar across provincial lines as well. 
  • This crisis of non-availability was precipitated, in particular, by the actions of the Government of the Punjab in August 2009 when it sealed the sugar mills and seized the stocks lying with the mills. This contributed in a most direct manner to interference with the normal demand-supply linkages of the sugar market. The panic on the part of the provincial governments disturbed these linkages to the detriment of all stakeholders, especially those on the supply-side such as sugar mills, dealers and retailers. 
  • It is the Commission’s considered view that the present crisis did not arise because of a price hike but more so because of mismanagement on the part of the Federal and particularly the provincial governments. The crisis actually began when the Punjab government panicked at the rising sugar prices in August and sealed sugar mills while seizing the stocks lying with them.

As they say in Hindi “ham sab ek hain” (we’re all the same) 

With grateful thanks to fiverupees.com  


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