Sugar mills of the central and northern Punjab have reportedly stopped crushing of cane within just a week of crushing season 2019-20 because of non-availability of sugarcane.
Sources told Business Recorder that only eight sugar mills of Punjab were operational right now while 30 had stopped their operations citing unavailability of the sugarcane or demand of higher rates than the government announced price of Rs 190 per maund. The closure has created apprehensions of increase in the price of sugar and creating issues for the growers.
A sugar miller confirming the development said the government delayed the notification of minimum procurement price of the sugarcane this year which delayed the crushing season. He said the minimum price was increased by Rs 10 while the growers were hoping for a quantum jump this year and halted the harvest of their crop.
He said that an average mill had to pay Rs 250 million to 300 million more this year because of this only Rs 10 increase would then ultimately also transfer in the price of the sugar.
The miller said growers were at present asking Rs 220-250 per maund which was not possible to pay by the mills. However, he said they would start their operations again once harvesting improves. "At this point in time, it is not possible for us to continue our operations at the exorbitant prices being asked by the growers."
Meanwhile, the Kissan Board Pakistan (KBP) has announced to stage a protest demonstration in front of the Lahore Press Club (LPC) on December 09 if the government failed to increase the minimum purchase price of sugarcane to Rs 300 per maund and wheat's support price to Rs 1500 per maund.
The announcement was made by KBP President Chaudhry Nisar Ahmad during a meeting with a delegation of growers called on him Tuesday hailing from different districts. The growers assured him to fully participate in the demonstration.
Copyright Business Recorder, 2019
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