Ministry of National Food Security and Research (MoNFS&R) has estimated that sugarcane growers in Sindh, Punjab and KP are expected to suffer a financial loss of upto Rs 133 billion due to less payment by mill owners, well-informed sources told Business Recorder.
Secretary, MoNFS&R, Fazal Abbas Makan recently informed the Council of Common Interests (CCI) that Article 16 and 16-A of the Sugar Factories Control Act, 1950 authorizes Provincial Governments to fix indicative price and premium of sugarcane and contravention of orders made under the Act punishable with imprisonment and/or fine.
Agriculture Policy Institute shares its working of cost of production of sugarcane crop with the Provincial Governments, on their formal request. For sugarcane crop 2017-18, indicative price was fixed at Rs 180/40 kg in Punjab and KP, Rs 182/40 kg in Sindh. Secretary MoNFS&R further explained that following issues had been observed during the current season: (i) delay in crushing season delayed the sowing of Rabi crops; (ii) non-payment of sugarcane price fixed by the Provincial Governments; (iii) receipts being obtained showing payments as per notified prices, though factually lower prices are being paid; in some cases CPRs are not being issued and being substituted by unprinted receipts; and (iv) non- payment of "premium" on the basis of sucrose content.
According to MoNFS&R, estimated total sugarcane production is 65.69 million tons of which 44.86 million tons in Punjab, 16.27 million tons in Sindh, 4.52 million tons in KP and 0.03 million tons in Balochistan.
Farmers' income from sugarcane at a price of Rs 180 per 40 kg has been estimated at Rs 593 billion. However, the Ministry has estimated that with current prices being paid to growers, farmers would face a financial loss of Rs 34.5 billion to Rs 133 billion.
Secretary, Ministry of National Food Security & Research proposed that CCI may resolve that respective provincial governments should ensure payment of notified prices, as per the Sugar Factories Control Act and for long term solution, Committee may be constituted, with direction to submit a report within 3 months.
Minister for National Food Security and Research, Sikandar Hayat Bosan, briefed the CCI regarding the plight of sugarcane farmers in Sindh and Punjab. He said that except one or two sugar mills of southern Punjab, no sugar mill is paying the minimum support price fixed by the provincial governments to the farmers. He said that the mills are purchasing sugarcane from farmers at the rate of Rs 120 to 130/40 Kg and getting signature from the farmers for the rate of Rs 180/40 Kg. He requested the CCI to direct the provincial governments to implement minimum support price of sugarcane. Chief Secretary Punjab said that existing stock of sugar was not utilized therefore sugar mills were not ready to purchase sugarcane from the farmers. He also stated that Trading Corporation of Pakistan (TCP) formula should be implemented as TCP was required to purchase sugar from sugar mills. He furthers said that Sindh High Court had fixed price of sugar cane at Rs 160/40 Kg. The government of Punjab was trying its level best so that the farmers can get a price of at least Rs 160/40 Kg. Secretary to the Prime Minister said that provincial governments should enforce the minimum support price and efforts of the Punjab government to purchase sugarcane at Rs 160/40 Kg were not justified. On a query from the Prime Minister it was revealed that the role of federal government was only to the extent of provision of data for calculating the cost of production of sugar. The Prime Minister urged that measures should be taken by the provincial governments to prevent such a situation next year.
After a detailed discussion, the CCI directed Ministry of National Food Security & Research to deliberate upon the problems being faced by the sugarcane growers, including timely payments to them on the prescribed rates. Expressing concerns, the CCI directed the Ministry of National Food Security to work with provinces for early resolution of the issue. The CCI also directed the provincial governments to impress upon the sugar mill owners to ensure timely payment to the cane-growers at the prices notified by the provincial governments within the given time frame and to take necessary measures to protect growers from all malpractices in sale of their sugarcane to the sugar mills.
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