The sugar mills in Punjab with an exception of one or two have missed the deadline of November 15, for the start of crushing season 2006-07. The mills owners are intentionally delaying the crushing to take it close to December when in their views sugarcane recovery rate reaches to a satisfactory level.
The mills owners say that by the of end November, sugarcane recovery rate remains as low as 5 and 6 percent and in December it reaches between 7 and 8 percent.
The growers and mills owners have different point of view over the commencement of crushing season and recovery rate. This pushes them into a bitter controversy almost every year.
The mills owners argue that till November sugarcane recovery rate remains very low and crushing can neither benefit the growers nor the industry as it does not make any economic equation.
The growers contest the mills owners' arguments and accuse them of using recovery rate as a tactic to delay the crushing season. They say that time was the essence in the case of sugarcane crop and delay of each day in start of crushing season cost the farmers dearly since they depend on crushing to vacate a large acreage of land to utilise it for wheat sowing.
The start of crushing season by Shakargunj Sugar Mills and Crescent Sugar Mills vindicate growers' position.
Historically, Shakargunj Sugar Mills and Crescent Sugar Mills start the crushing season much earlier and produce more sugar than other sugar mills.
After series of meetings with the government authorities, the Pakistan Sugar Mills Association (PSMA), the representative body of the sugar industry, had last month agreed to start the crushing season in Sindh and Punjab from the first and second week of November respectively and in return it got some concessions for the industry. Imposition of duty on sugar import was one of them.
It may be noted that the mills owners in Sindh had partially honoured the commitment, but since the number of the mills that entered into crushing as per schedule was quite good. The government did not take hard stance in the case of those, which missed the deadline for one reason or another.
Its different story in Punjab The officials, who made things happen in reaching to an understanding with the PSMA are puzzled over delay in start of crushing season. They have strong feelings now that the mill owners in Punjab were intentionally delaying the crushing season to create an impression among the growers that they may not get as good price of the crop this time as they got last year.
One member of the official team that brokered the deal with PSMA told this correspondent on Wednesday that the government was closely monitoring the sugar mills activities and the possibility of a punitive action against rogue mills cannot be ruled out.
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