Pakistan Sugar Mills Association (PSMA) Sindh zone is at loggerheads with the central PSMA office on sugarcane pricing formula for proposed linking up of minimum sugarcane price with sugar rates, it is learnt. Industry sources said that PSMA Sindh zone is concerned over differential in sugarcane price between Punjab and Sindh for the proposed formula and wants equal rates for the formula for all provinces.
Sources said that majority of Sindh zone members call the differential in sugarcane rates for Punjab and Sindh as unfair and want that the PSMA (central office) should convey their point of view to the federal government.
One of the aggrieved millers from Sindh told Business Recorder that PSMA Sindh zone has been asked by majority of millers to take hard stance on the issue, and oppose the pricing formula with tooth and nail so that the mill owners do not suffer any setback on this issue.
The miller said: "The Sindh-based millers are already suffering due the controversial Sugarcane Act and we do not want another controversy for Sindh which is a major sugar producing province."
He was referring to the notices served on sugar millers of Sindh by the provincial Sugarcane Commissioner for delay in starting crushing operation. The controversy is yet to be resolved and it is doubtlessly adding to the woes of sugar industrialists of the province.
It may be noted that the inter-ministerial committee on sugar, which met in Islamabad last Friday, had agreed in principle to an interim arrangement, which indicated a difference of one rupee in sugarcane rates between Sindh and Punjab.
According to the arrangement if sugarcane rates for any season would be Rs 40 per kg for Punjab it would translate into Rs 41 for Sindh.
However, as per arrangement, sugar rates for the entire country would be uniform.
Historically, Sindh has had different sugarcane rates from Punjab. The sugarcane prices pattern shows that Sindh paid Re 1 more to the sugarcane growers than Punjab and its basic reason was better recovery rate of the crop in Sindh.
The committee, which is pushing forward its plan to link up sugarcane and sugar prices, might have the same record before it while deciding one rupee extra for sugarcane price from Punjab, but it could sore the working relationship between the government and various offices of the PSMA.
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