The government on Wednesday turned down sugar mills' plea for delaying crushing by two weeks and asked the Pakistan Sugar Mills Association (PSMA) to ensure that its members units start crushing from October 1 and November 1 in Sindh and Punjab, respectively. A PSMA, delegation headed by Chairman Sikander Khan, was told in clear terms by government delegation in the meeting of sugar sector stakeholders that its member units should follow the agreed schedule for commissioning of crushing season to avoid punitive action under Sugar Act.
The government team comprising Food Minister Sikander Bosan, Industries Minister Jahangir Tareen, provincial Ministers for Agriculture and Cane Commissioners, did not agreed with PSMA office-bearers that sugarcane crushing could not be started as per schedule from November 1 due to Ramazan and Eid-ul-Fitr when labour remains off the work.
Sindh government's representatives came even harder on the issue and the provincial Cane Commissioner demanded starting of crushing season in the province from October 1, one month ahead of schedule.
It may be noted that the PSMA had agreed with the government some time back to start forthcoming crushing season from November 1. But Cane Commissioner Sindh created new situation for the PSMA delegation by demanding start of new crushing from October 1. He said that commissioning of crushing season later than October 1 would worsen the water crisis in the province and would adversely hit the next crop.
Sources told Business Recorder that sugar mill owners were warned of action against them if they did not follow the Sindh government view for crushing season.
The PSMA delegation resented the threat of action under Sugar Act. Sikander Khan reminded the government side that the government could not take action against any sugar mill owner as the law had gone redundant. This created standoff-like situation between the parties. However, further discussion melted the ice and both parties agreed to leave the issue for another meeting to be held in Karachi on September 21.
Sources said the PSMA members would try to convince Chief Minister Sindh on September 21 that early start of crushing would pay good result neither to the millers nor the growers.
Other issues which figured during the meeting were payments to the growers in Sindh and release of Trading Corporation of Pakistan stock in the market. However, a final decision on all issues is expected next week.
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