Pakistan Sugar Mills Association (PSMA) on Wednesday hinted at possible sugar price hike besides its shortage, if the government did not ensure smooth supply of sugarcane to the mills. The sugarcane farmers have not yet been in a mood and perhaps in position to harvest sugarcane and arrange supplies to the mills, said an official statement.
The statement said that sugarcane supplies to mills had been in a small quantity of 10,000 to 20,000 maund a day, just 10 to 15 percent of the restive crushing capacity. It added that some of the sugarcane farmers were preoccupied with sowing of wheat and sugarcane, while others harvesting rice.
"At this low level of operations, the mills have been suffering colossal losses of consuming furnace oil worth millions of rupees a day, which eventually is a burden of imports on the national economy," the statement remarked. It further said that the entire sugar industry of Sindh had plunged into deep financial crisis for want of normal sugarcane supplies.
"Unless sugarcane supply by the farmers is expeditiously initiated, the sugar industry will come to a halt and face severe economic consequences due to no fault of its own," the statement pointed out. "Unfortunately, if this situation persists, a shortage of manufactured sugar may cause a price hike, which is beyond the control and responsibility of the sugar industry in those circumstances," the statement said.-PR
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