Crushing season 2006-07, is in doldrums as Pakistan Sugar Mills Association (PSMA) central executive committee (CEC) meeting in Karachi on November 22 (today), to consider the option of shutting down the mills in Sindh and further delay operation in the Punjab in protest against Trading Corporation of Pakistan's (TCP) fresh offloading of sugar in the open market.
PSMA is creating an impression that TCP's fresh move tantamount to the government's backing out from its commitment of not injecting more stocks into the open market to help the industry start crushing season as per agreed schedule and now the mill owners were also free to decide the issue at will.
The officials term PSMA's recent announcements of holding the government responsible of delaying the season and referring TCP's move as an illogical and a tricky move to gain more time to start crushing. They argue that PSMA had given a clear commitment that sugar prices at retail level will not exceed Rs 34 a kg and in return the government ensured that TCP will not offer its stock to the buyers in bulk till November 30.
It may be noted that the government and PSMA had reached to an understanding last month to start the crushing season on a give and take formula in Sindh and Punjab from the first and second week of November respectively.
The officials are of the view that its PSMA which did not honour the commitment and pushed-up prices to over Rs 36 per kg soon after the government announcement to impose 15 percent duty on sugar import. They recalled that PSMA often backs out of its commitments and referred a case of providing 10 percent of stocks to the Utility Store Corporation to offer the needy at subsidised rates.
According to the officials, PSMA had given a commitment to president general, Pervez Musharraf, to get withdraw National Accountability Bureau (NAB) cases against some of its members. PSMA demand was met but it did not honour the commitment.
The government-PSMA row over crushing season will definitely hurt the growers as they can not hold back the crop for indefinite period. Its another dark side is that the growers will not get vacated some of their land for wheat sowing.
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