Pakistan Sugar Mills Association (PSMA) has warned the government that starting fresh sugar crushing season is not possible without enforcing uniform price of cane in all the provinces, disposing surplus sugar stocks through exports, clearing the arrears of inland subsidy which were due for last over two years and clearance of dues under subsidy of Rs 10 per kilogram announced on export of 650,000 tons of the commodity last year.
PSMA Central President Iskandar Khan and Punjab President Javed Kayani while addressing a joint press conference here on Thursday urged the Punjab government to withdraw the ordinance promulgated recently binding the sugar mills to pay the dues of growers within 15 days of procurement of cane or face sealing of their mill and auction of their stocks.
They said that sugar milling is a business and the government should let it run according to the businesses. They said the government was used to lift 15 days production of the sugar mills under the Sugarcane Control Act 1950, which facilitate the millers to pay the dues of the growers.
"Now government fix the price of the sugarcane but neither buy sugar nor fix its ex-factory price and forces the millers to pay back the dues. We produce sugar for four months and have to sell the commodity in 12 months so delay occurs in some cases," they added. They also demanded that the government should permit export of 500,000 tons of sugar immediately with subsidy to meet the international prices to clear the carryover stocks enabling millers to start next crushing season. They also claimed that most of the sugar produced in the country is utilised by the industrial sector and not by the domestic consumers. They claimed when the sugar prices were declined by Rs 30 during the past it only resulted an annual benefit of just Rs 200 to a family.
Javed Kayani said that prices of sugarcane in Pakistan were higher than the rest of the world. He said that the government should give direct subsidy to the farmers as a result of which millers could get cheaper sugarcane and produce cheaper sugar. He further said that there was a disparity of Rs 22 in the prices of sugarcane in Sindh and other provinces as a result of which Punjab paid Rs 59 billion more to its growers than Sindh.
He said that according to survey of Agriculture Policy Institute, prices of sugarcane in Punjab should be at Rs 138.7 and for Sindh at Rs 143.12. Nevertheless, he said that millers are not against paying better price to the growers but the government should enable the millers to start the fresh crushing season by allowing export of surplus stocks with a rational subsidy, providing level playing field to the millers of all the provinces and withdrawing the order of payment in 15 days after the procurement of cane.
Kayani also claimed that there was an unprecedented sowing of sugarcane in September and February sowing would follow the suit which would result in a super bumper crop next season.