The Punjab government has approved a new system of payment to the sugarcane growers on the basis of sucrose contents which will take effect from December 31, 2009. The new system has been approved in the light of the Federal Sugar Policy 2009-10 aimed at ensuring that benefit of the high sucrose sugarcane crop are duly passed on to the growers.
A spokesman of the Food Department said here on Wednesday that the Competent Authority has approved this new system of payment besides approving the Standing Operating Procedures (SOPs) to implement the decision.
Under the new system the minimum support price of sugarcane already notified as Rs 100 per Rs 40/kg shall be for a baseline recovery rate up to 8.50 percent, which shall be enhanced at the rate of Rs 1.20/- for every 0.1 percent increase in the recovery above the baseline recovery, the spokesman added.
He said that the enhanced price of sugarcane shall be given only on approved varieties of sugarcane duly notified by the Agriculture Department. He said that all sugar mills in Punjab shall establish polarimeter sucrose testing laboratory by December 31, 2009, which shall be replaced by core sampler latest by October 15, 2010. The spokesman said that a fully autonomous third party evaluation system shall be put in place by the government to ensure fair, transparent and neutral ascertainment of the sucrose contents by the polarimeter. The system shall also ensure settlement of all disputes that may arise between the sugar mills and growers regarding sucrose contents and payment thereof, the spokesman added.
He said that a network of at least three mobile laboratories shall be established by the government, which shall be run and managed by an autonomous body having power to issue requisite reports and to resolve disputes and issues referred to it. He said that the sugar mills sucrose testing laboratories shall randomly be calibrated by these mobile laboratories and the result thereof shall be displayed in such a manner to be easily accessible and visible to the growers. In case of any dispute with regard to the sucrose contents, the result of the mobile laboratories shall be final and binding on all the concerned, the spokesman concluded.
Chairman Agri-Forum Pakistan, Muhammad Ibrahim Mughal reacting to this decision of the government said that this decision should had been taken three months back by the government. He said that core sampler were needed to ascertain the sucrose level in sugarcane.
He said that it was not possible that these samplers could be installed in the factories by December 31, 2009. Infact if they start installing these today then these would become operative by March. At that time crushing season would be over and farmer would get no benefit of it.
Meanwhile President Kisan Board Pakistan (KBP) Sardar Zafar Hussein Khan while talking to Business Recorder expressed the fear that new system of payment would only benefit the millers and not the growers. He said that majority of the farmers were not literate and they had to believe what the millers would tell them about sucrose content in their sugarcane. He alleged that already farmers were fleecing weight of sugarcane by the people at mills.
He said that the Board was raising voice against introduction of such a system right from the day one. Instead the government should had recommended only those varieties which have high sucrose content and rest of the varieties could be banned by the agriculture department. Millers should also be asked not to buy the low sucrose content varieties, thus compelling the farmer to sow high sucrose sugarcane which ultimately benefit grower.
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