Commerce adviser testifies before sugar probe commission.

Byline: Ishaq Tanoli and Mubarak Zeb Khan

ISLAMABAD/KARACHI -- Adviser to the Prime Minister on Commerce Razak Dawood on Thursday appeared before an inquiry commission investigating a sugar scam and recorded his statement on the decisions taken by the Sugar Advisory Board regarding export of the commodity.

The commission had also summoned Sindh Chief Minister Syed Murad Ali Shah, but he refused to appear before it and said the issue pertained to the province of Punjab.

Mr Dawood is the fifth high-profile figure to appear before the commission looking into the sudden spike in sugar and wheat prices last year. The commission is tasked with issuing a forensic audit report on the 2019 sugar and wheat crises.

Mr Dawood confirmed to Dawn that he appeared before the commission to record his statement, but declined to provide any details. He said he would not talk to the media on the issue.

However, when pressed to share some of the issues raised during the hearing, the premier's adviser said he would make his position clear on Friday (today). 'I will issue a statement on May 15 to clarify my position,' he said.

Sindh chief minister refuses to do so, saying the matter pertains to Punjab

Mr Dawood's statement before the commission may be very important given that soon after the release of the first report on the sugar and wheat crises the prime minister took away the portfolio of ministry of industries and production from him and that of ministry of food security from Khusro Bakhtiar. Mr Bakhtiar was later given the portfolio of economic affairs.

Mr Dawood as chairman of the Sugar Advisory Board had proposed to the Economic Coordination Committee (ECC) of the federal cabinet that export of sugar might be allowed. The ECC allowed export of 1.1 million tons of sugar in October and December of 2018.

Out of the total allocation of the quota, only about 750,000 tons of sugar was exported. The average retail price of sugar was Rs53.75 per kilogram in 2017-18, Rs61.43 in 2016-17, Rs64.03 in 2015-16 and Rs58.91 in 2014-15, respectively. The price of sugar increased to about Rs80 per litre when the sugar crisis was at its peak by the end of December 2019.

An increase of Re1 in the price of sugar at the retail level means the net spending of Rs5.1 billion by the consumers. The yearly consumption of sugar in the country is between 5m and 6m tons.

An earlier inquiry report filed by the Federal Investigation Agency (FIA) on the crisis had revealed the names of...