Issues - A man made crisis which in fact is a monopoly to...

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ASSIGNMENT PRESENTED TO: MR JAWAD GILLANI BY : SALMAN ZAFAR SEC : L ID : 07U0185
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S ugarcane is the second largest non-food crop after cotton and ranks fifth in respect of acreage. Prolonged drought and heat stress decreased its production by 22 per cent in 1999-2000, and further 17 per cent in 2000-01. There has been confrontation between growers and millers over price. The farmers have reportedly blamed the mill owners of not providing adequate payments. Records state that the payments to the growers were delayed for more than eight to ten months. This discouraged farmers from sowing sugar cane and opt for growing wheat instead to avail attractive incentives. Now comes time for manipulations by the mill owners. Not only are the mill owners accused of delaying payments causing a decrease in supply of about 15 to 20 percent as compared to last year, they have also hoarded large amounts of supplies. These supplies have been hoarded (conveniently) in order to create an artificial shortage in the market. The shortage then allows them to
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release stock as they wish with prices that give them maximum profit.
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Unformatted text preview: A man made crisis, which in fact is a monopoly to earn maximum profit during peak consumption. Withholding supplies and increasing prices for maximum profit has become a popular tactic. Previously during the wheat crisis reports of withholding stocks kept surfacing. The fact that the issue is not new puts the blame falls entirely on the incompetence of the Government. The lack of strategy to keep track of rising prices .The failure of the Government to tackle the delayed payments and hence less growth of sugar cane issue is to be blamed as well. Despite the clear lack of strategy, the authorities seem to be more interested in playing the blame game, instead of focusing on the problems. The Punjab Government was the first to react after government announced an increase sugar price, accusing the federal Government of not consulting the provincial Government on the matter. Also announcing that the provincial government is determined to sell sugar at Rs.40 in Punjab....
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Issues - A man made crisis which in fact is a monopoly to...

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