The Economic Monitoring Committee (EMC) has been informed by the Finance Ministry that the sugar industry projects 3.7 to 3.8 million tons sugar production from 2008-09 crushing season, commencing November 15.
The committee in its last meeting was also informed that the sugar industry has given a commitment to the government to begin upcoming crushing season from November 15.
Sources said despite less area of plantation, PSMA pins hopes of a reasonable sugar output from upcoming season on the grounds that the crop yield was going to remain better than last season due to timely rains. PSMA Punjab and Sindh zones have already submitted crushing season plan to the respective provincial Cane Commissioners.
A PSMA team headed by Punjab zone chairman Javed Kayani had held meetings with the officials in Islamabad to apprise them of the sugar industry plan to encourage growers to work closely with mills to increase per acre yield. The plan stressed the need for eliminating middleman's role in sugarcane buying and give direct benefit to growers. It also gives a commitment on the part of the industry to ensure timely payments to growers. Over the years payment to growers is becoming a bitter controversy. The growers complain of delay in payments by sugar mills.
A report presented to the EMC indicated that with the start of the crushing season, sugar prices will come down reasonably to the benefit of the consumers. The government and PSMA had serious differences over the start of the crushing season that provided a golden opportunity to the middleman to exploit the market and create an impression of sugar shortage.
Sugar prices are showing upward trend for several months and in the open market the prices of one kg sugar ranges between Rs 35 and Rs 36. The EMC was informed that the government will take all possible steps to keep the sugar rates at a reasonable level.