A spokesman for Pakistan Sugar Mills Association (PSMA) has criticised the cancellation of two bids by the Trading Corporation of Pakistan (TCP) to get 50,000 tonnes each tenders (total 100,000 tonnes) of sugar. These tenders were called to procure sugar from mills so as to bail out the sugarcane growers for their sugarcane payments, the spokesman said in a press release issued here on Thursday.
The spokesman said that this year sugar industry has produced 4.7 million tonnes of sugar which together with imported sugar stocks with the TCP is about one million tonnes surplus over and above consumption in the country.
Due to availability of surplus sugar stocks in the market since the time of the Shaukat Aziz government, that allowed unlimited import of Indian sugar in the year 2006-07 together with dumping of sugar of Afghan Transit Trade and current year surplus has created glut-like situation.
He said the present government realising the ground realities to rescue the sugarcane growers directed the TCP to procure 750,000 tonnes (500,000 + 250,000 tonnes) of sugar from mills through tenders so that cane payments to the sugarcane growers could be ensured.
But the recent cancellation of the last two tenders by the TCP one after the other in 10 days has played havoc with the market sentiments and efforts of the federal government who was trying to stabilise the market so that procurement of sugar in the local market could also be ensured, but due to this wrong decision the whole sugar business has been jeopardised.
The spokesman said he had appealed to Prime Minister Syed Yousaf Raza Gillani to personally intervene and direct the TCP not only to procure 100,000 tonnes of sugar from the mills in lieu of cancelled tenders and immediately order for fresh tenders.
This will restore the market sentiment and the cane payments to the farmers would also be restored. He said the buying and selling of sugar is only possible when the market is bullish and in case of depressed market no sugar buyers can come forward for the purchase of sugar.
As a result, it not only pushes the sugar industry into crisis because of low prices in the market but the sugarcane growers also get into crisis as both are the important stakeholders in the sugar business and are sailing in the same boat.-PR
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