Pakistan Sugar Mills Association (PSMA) has criticised the decision by Finance Minister, Ishaq Dar in which TCP was asked to buy 0.25 million tonnes of sugar from mills for building up a buffer stock, and termed the decision as insufficient.
A spokesman of PSMA said this here on Wednesday. Moreover, he said that the decision to get 0.25 million tonnes of sugar from sugar mills is too little since problems being confronted by the sugar industry were far much greater, since the sugar prices in the market had been forcibly pushed down by the previous regime.
"As a result, not only the sugar industry is stuck and in a deep crisis, but also sugarcane growers are also hit with cane payments, which are totally stuck because of the depressed sugar prices. The industry is not in a position to clear sugarcane growers' dues, salaries, pay back to its investors in industry or other business obligations at the prevailing prices of sugar," he added.
To bail out the sugarcane growers, industry and millions of other people, who are directly or indirectly linked with this business and their livelihood depend on the sugar industry, are in deep crisis. We recommend that the quantity should be increased from 250,000 to 500,000 tonnes of sugar.
Minimum rate in the TCP tender should be clearly mentioned at Rs 29.50/kg that had already been agreed in the Secretaries Committee meeting held in October, 2007. Furthermore, he said that the issuance of PSMA certification must be made mandatory and must be submitted with tender number, so that equal distribution of the share of quota to supply sugar through participation in the tender can be ensured to all the member sugar mills.
He said if the government implemented the suggestions, 100 per cent of sugarcane growers' payments would be ensured that could obviate any future sugar or sugarcane crisis.-PR
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