No sugar mill in the country has yet started boilers light-up - an initial stage of sugarcane crushing - to meet the government deadline. Now a large number of mills are expected to default on loan repayment to banks on or before October 31, the last date for the settlement of dues by SBP.
There are only a few sugar mills in the country, which have paid the outstanding dues while the majority is still looking for buyers to sell the commodity to pay off debts, the sources said, adding that mills might not meet the SBP deadline. They warned that the sugar crisis would deepen further if the mills failed to start crushing at the stipulated time, as the available stocks are fast depleting and there might be no sugar in the local markets from next month.
The millers are yet to receive letters from the governments of Sindh, Punjab and NWFP for the start of crushing season, they said, adding that the millers are also avoiding crushing before December 2009 due to immature crop. The millers usually delay the manufacturing of sugar, owing to immature crop and low sucrose content during November.
The sucrose content and weight of the crop increase during peak recovery month of December when crop matures, the sources added. They said the manufacturers are also waiting for the final Supreme Court decision on sugar prices. The millers have decided not to start crushing if they are ordered to sell the commodity at Rs 40 per kilogramme during the next crushing season, the sources said.
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