Mills to provide sugar at Rs 40 per kg: government accepts most of the demands: PSMA

The government has accepted most of the demands of sugar mill owners to sell sugar at 40 per kg to 30 per cent of consumers in the light of Supreme Court''s instructions.
"Our demands like linking of sugarcane price with sucrose content, import of 0.5 million tons of raw sugar next year, provision of working capital, extension in payment deadline for working capital taken last year, have been accepted by the government and in return we will provide sugar to the government to sell it at Rs 40 per kg in the market," revealed a top office-bearer of Pakistan Sugar Mills Association (PSMA) exclusively to Business Recorder on Tuesday night.
Asked if both the government and mill owners are meeting on Wednesday (today) again, he said the government had considered the last meeting (Monday) as final meeting and acceded to most of sugar mill owners'' demands. Replying a question, he said, for now sugar would be sold at Rs 40 per kg to domestic consumers but from next year, the government had agreed to free market mechanism while ensuring where there will be no hoarding.
Answering another question, he said selling of sugar Rs 40 per kg is the headache of the government, PSMA has accepted 70:30 formula for Supreme Court of Pakistan. The government is expected to use utility store network, mobile utility stores, and the data of Benazir Income Support Fund (BISF).
Utility Stores Corporation (USC) has requested the government to arrange sugar for its outlets as its stocks are running low and are sufficient for two days only, the sources added. The sources said the government had agreed to pay premium on better variety of sugarcane aimed at encouraging those growers who cultivate higher sucrose content crops.
Another participant of the meeting, which was held in the Industries Ministry on October 26 informed Business Recorder that the issue of Cane Procurement Receipts (CPRs) had also been resolved after the State Bank of Pakistan agreed to the proposal. "Now CPRs will be considered as cheques, which was the long-standing demand of farmers," he added.
A participant from Sindh told this newspaper that the government had conveyed to the sugar mill owners that the decision of the Supreme Court would be implemented in letter and in spirit. The government also conveyed to the mill owners that about 1 million tons of raw sugar would be imported after the crushing season so that a decision taken in a hurry would not hurt growers. State Bank of Pakistan (SBP) will ensure implementation of the plan.
There was no consensus over sugar supply mechanism, and the provincial governments would be asked to implement the plan in letter and spirit, sources added. Replying to a question, a participant of the meeting said that it was decided that an outstanding amount of Rs 15 billion to growers would be paid by the mill owners in instalments, starting from March.
He added that Sugar Policy 2009 would be implemented from January 2010 after its announcement in December. Meanwhile, the spokesperson of the Ministry of Industries and Production has contested the contents of a news item "Govt, sugar millers fail to reach consensus" carried by Business Recorder on 27th October, 2009.
According to the spokesperson, the news item has distorted the outcomes of the two meetings as were held in relation to the Sugar Advisory Board under the chairmanship of Mian Manzoor Ahmed Wattoo, and a Ministerial Committee meeting under the chairmanship of Shaukat Tarin, Minister for Finance.
"All the decisions were taken while considering the agenda items in their respective format and the final decisions were taken as on a consensus basis among all the stakeholders including the representatives of the federal and the provincial governments and the members of the Pakistan Sugar Mills Association. The same needs to be corrected in its true spirit," the spokesperson concluded.