Pakistan Sugar Mills Association (PSMA) has claimed that the ongoing crisis in the sugar industry is having multiple effects with every passing day.
A PSMA spokesman said here on Friday that the industry had suffered huge losses due to backing out of government from its commitment at the start of the crushing season by allowing Trading Corporation of Pakistan (TCP) to offload 25,000 tonnes of sugar in November 2006.
He claimed the government had made a clear-cut commitment to stabilise the ex-mill sugar prices Rs 31 per kg. But Trading Corporation of Pakistan offloaded sugar when the sugar mills have just started the crushing season, which has crashed the sugar price due to the negative signal in the market sentiment.
According to him, the industry is facing worst crisis of its history only because of unwanted and solo decisions of the government. He said the Chairman, Secretaries Committee on Sugar had promised to call for a meeting to resolve the issue but the delay was deepening the crisis.
PSMA spokesman made it clear that with the present sugar prices industry was not in a position to clear the growers' dues of around Rs 15 billion. The crisis might render the industry unable to start the next crushing season, he remarked. He urged the government to honour its commitment. As the government is itself responsible for 33 percent increase in minimum price of sugarcane and the wages of workers, so it must address the fall out of its policies and decisions, spokesman added.
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