Members of Pakistan Sugar Mills Association (PSMA) Punjab have urged the President Pervez Musharraf to intervene immediately before the current crisis pushes the sugar industry in deeper crises, causing detrimental impact on survival of the industry and ultimately affecting the sugarcane growers.
This was demanded at the PSMA Punjab Extra Ordinary General meeting, which was chaired by Chaudhry Zaka Ashraf, said a spokesman of the Association here on Monday.
He said the members discussed in detail the prevailing crisis emerging out of 33 percent increase in the support price of sugarcane and salaries, besides other input costs. The members also pointed out that the government had worked out with the industry and the cost of producing sugar decided at Rs 31 per kg after assessing the costs in detail in several meetings between MINFAL, APCOM and Provincial Cane Commissioners.
According to them, the committee of the federal secretaries on sugar industry had also agreed on principle not to let the prices go down or up to the level of Rs 31 per kg. However, the members strongly deplored that government issued a tender of 25,000 tones of sugar through Trading Corporation of Pakistan at the very start of crushing season followed by another similar quantity tender last week when crushing season is in full swing.
This release of tender has jolted the industry altogether and crisis has deepened further, he added. The PSMA spokesman said industry was incurring losses since last year when government allowed import of sugar while extending a subsidy of Rs 12 billion and market was forcibly crashed. Each sugar mill, he said, has suffered huge losses ranging between Rs 120 to Rs 160 million.
A sudden increase in input cost this year has proved the last nail in industry's coffin, showed that hidden hands working on the agenda of closure of the industry. It also showed that they were actually working to sabotage the efforts of President of Pakistan who was committed to ensure the smooth operation of the industry and the country's economic prosperity, he added.
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