Sugar export proposal

.

The recent request by sugar mill owners to once again export "surplus" sugar should be met with firm resistance. The case against allowing exports is well-established. Almost every year in recent history, mill owners have 'convinced' the government to allow exports to stablise prices or for some other excuses, and within a few months, the country is left facing devastating shortages that lead to skyrocketing prices.

Last year, prices of the essential commodity skyrocketed from Rs120 to over Rs200 per kg as a direct consequence of flawed export approvals based on shoddy data provided by the mill owners themselves. An inquiry panel accused mill owners of acting like a cartel and the government of failing to properly regulate them, but none of the principal figures faced serious consequences. Similarly, last year's wheat crisis shows that the issue is not only about sugar. The government has time and again proven itself to be incapable of regulating the agriculture sector - especially when doing so would hurt the pockets of several members of the ruling class.

The government must not fall for the same misleading claims of a "surplus" stock that have burned us before. The damage from such price shocks can destroy household budgets, especially for poorer families, for whom food already makes up the lion's share of the household budget, and sugar is often the only reliable source of carbohydrates, since they may not be able to afford fruit.

If the government really wants to consider this proposal, it must first ensure accountability. Any approval must be contingent on a legally binding agreement that holds mill owners and traders liable for any resultant domestic shortage or price hike. They must be forced to either post bonds or face heavy penalties. Without such teeth, consumers will continue to suffer and go further down the poverty spiral, as mill owners line their pockets.