The government and Pakistan Sugar Mills Association (PSMA) have agreed for the constitution of a committee to resolve "longstanding controversy" over commissioning of sugarcane crushing season. Federal Food, Agriculture and Livestock Minister Sikandar Hayat Khan Bosan will chair the committee, while officials of the ministry and PSMA representatives would be its members.
An official of the Ministry of Food, Agriculture and Livestock (Minfal) told Business Recorder here on Friday that the committee would consider PSMA's request of linking sugar price with the sugarcane prices.
The matter to release 0.2 million tonnes of sugar by the Trading Corporation of Pakistan (TCP) out of its strategic stocks would also be examined by the committee, he added. The official said after its constitution within a couple of days, the committee would hold its meetings and submit recommendations to the ministry within a week.
He said that the PSMA has approached the government and conveyed its willingness to start crushing in Punjab and NWFP on November 1.
But, he added, the PSMA secretary general also asked the government to consider their demands of raising the price of sugar being injected into the market by the TCP from Rs 19 per kilogram to Rs 20 per kg and reducing sugarcane prices in Sindh from Rs 43 per 40kg to Rs 41.
Asked whether the government was willing to accept PSMA demands, the official replied that any decision in this regard would be taken in the light of committee's recommendations.
Meanwhile, a meeting of the PSMA representative with an inter-ministerial committee on sugar on October 19 on the issue remained inconclusive, as both the sides remained firmed to their respective stance after that meeting.
The PSMA approached the government a day after it was reported that TCP had decided to float another tender next week for the sale of second instalment of 50,000 tonnes of buffer sugar stock to keep the prices stable.
The TCP, under a cabinet decision of injecting 0.2 million tonnes sugar out of its buffer stocks into the open market, had already completed the sale of the first instalment of 50,000 tonnes.