Prime Minister Shaukat Aziz has accepted a set of demands of Pakistan Sugar Mills Association (PSMA), but asked the officials to seek guarantee from its representatives to ensure that the industry would start crushing operation for season 2006-07 as per schedule - from November 1 and 15 in Sindh and Punjab, respectively.
Sources said that as per Prime Minister''s directive, the official team, headed by Secretary, Food and Agriculture, Ismael Qureshi, would meet with PSMA team in Lahore on October 9.
Official circles say that the government doubts PSMA''s credibility due to its betrayal on different occasions in the past, and this mistrust was felt at the highest levels. The officials have strong feelings that PSMA may get concessions from the government but would delay the crushing operation beyond agreed the deadlines.
The officials refer to latest sugar price hike and last year''s controversial crushing operation when the two sides held each other responsible of price war on sugarcane and subsequent unprecedented rise in sugar prices. The row resulted in NAB''s entry to investigate and fix responsibility for sugar crisis. However, its unceremonious exit closed the chapter and left the people to guess who was behind sugar price hike that lasted from December 2005 to April this year.
The officials still feel that a strong lobby of sugar millers, which had full backing of PSMA, had created sugar crisis to make money by fleecing the consumers last year.
An official privy to decisions taken by the Prime Minister on October 7 in Islamabad said: "The government will announce concessions for sugar industry, subject to PSMA guarantee that its members would honour commitment to start the crushing as per schedule.
Sources said that the Prime Minister''s decisions would have far-reaching impact on each player of sugar sector and finally help them work in a good atmosphere during the upcoming crushing season.
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