Minister for Industries and Production, Hammad Azhar has reportedly linked action on proposals of Pakistan Sugar Mills Association (PSMA) to the outcome of Sugar Inquiry Commission, well-informed sources told Business Recorder.
His comments were made at a meeting of Sugar Advisory Board (SAB) which met on Monday to discuss actual production in crop year 2019-20, carryover stocks from previous year, expected consumption for crop year 2019-20; expected surplus/ shortage at the end of crop season 2019-20, if any and the review of prices of sugar.
Sugar Inquiry Commission headed by Director General, FIA, Wajid Zia has quizzed the representatives of PSMA and Chief Executives of 10 sugar mills and will submit the report to Cabinet in its next meeting.
The meeting was attended by different stakeholders including representatives of provincial governments and growers. The government side expressed concern on current sugar prices in the country.
The sources said PSMA's team led by its Chairman Aslam Faruque said that accusations leveled against the sugar industry in the inquiry report and continuation of Inquiry Commission have defamed the sugar industry.
Unconfirmed reports suggest the meeting was informed that the total production during crop season 2019-20 recorded 4.846 million tons and with carryover stock of 0.506 million tons , it stood at 5.352 million tons. After off-take/ sold stock of 1.987 million tons total balance as of May 8, 2020 was 3.365 MT. The estimated consumption of remaining seven months of current year on the basis of 0.442 million tons has been estimated to be 3.094 million tons which implies a surplus of 0.271 million tons will be available.
This stock is less than strategic reserves i.e. 0.442 million tons per month and for two months it should be 0.884 million tons.
The representatives of sugar industry were of the view that since industrial and commercial consumption which is 60 per cent of total production has dropped significantly due to closure of industrial and commercial sectors, it is estimated that at the end of start of next crushing season, surplus sugar will be available in the market . However, differences were witnessed in the figures of PSMA and the Ministry of Industries and Production.
The representatives of provincial governments shared their production figures, availability of commodity and current price trends.
Hammad Azhar heard the viewpoint of PSMA's representatives but did not give any assurance on the proposals of Association, saying he would respond after the Inquiry Commission on Sugar is received.
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