Provinces yet to announce cane support price: crushing may not start from October 1

Although, the country is already facing shortage of sugar due to low production of sugarcane crop last year, the provinces seem reluctant to announce the minimum support price for the crushing season 2010-11, which according to Sugarcane Factories Act 1950 should commence from October 1.
The agriculture departments of the three provinces--Punjab, Sindh and KP--have not yet fixed the minimum support price for sugarcane for farmers even 15 days before the start of crushing season 2010-11. Delay in announcement of minimum support price by the provinces may result in delay in the start of crushing season 2010-11, sources told Business Recorder on Tuesday.
"According to Sugarcane Factories Control Act 1950, the crushing season across Pakistan should start from October 1 every year but provincial governments could not announce sugarcane support price to start crushing season," they said, adding that laziness on the government side may result in worst sugar crisis.
They said the country is already facing shortage of the commodity, which resulted in escalation of its prices in the open market. Instead of pressurising the mill owners for starting crushing on time, the government is delaying announcement of minimum support price. Usually, the agriculture departments fix the price some three months before start of season, but this time there has been unnecessary delay, they added.
Taking advantage of the situation, the millers have refused to start crushing from October 1, which may deepen the current sugar crisis in the country. Sugar stock with Trading Corporation of Pakistan (TCP) and open market is sufficient for this month only. If crushing would be started on time, the crisis could be averted.
During a brief conversation with a sugar mill owners, it emerged that the mill owners have decided not to start crushing operation before December 1. He said the devastation of flood had left far reaching impact on sugarcane crop. He said the crop, spreading on thousands of acres of land, had been washed away by flood, but the farmers are still trying to save the remaining crop from further damage. It seems difficult that the crushing would start before December 1, the mill owner added.