KARACHI, Aug 26: Higher production of refined white sugar this season (2001-2002) has resulted in huge unsold stocks with the millers resulting in liquidity crunch for the millers.

The production figures released by the Pakistan Sugar Mills Association (PSMA) indicated that the mills are holding around 0.990 million tons of unsold stocks up to August 15, 2002.

The white sugar production this year stood higher by 236,517 tons at 3.249 million tons as against 3.012 tons produced during the corresponding period of last season (2000-2001).

The wholesalers and big dealers have so far lifted around 2.258 million tons leaving unsold stocks with the mills at 0.990 million tons which are sufficient to meet over three months demand.

According to government estimates this year cane production is expected to be much higher than previous year (2001-02), which would result in huge exportable sugar surplus.

However, high cost of production and lower contents of sugar in the cane pushes the cost of white refined sugar very high, rendering uncompetitive in the world market where cheaper sugar from other countries is available.

The PSMA has admitted that stocks of unsold sugar is much higher with Sindh millers and they may have to delay the crushing season for couple of months after disposing of their current stocks to improve their cash flow. Sugar production in Punjab showed remarkable improvement this season (2001-02) at 2.156 million tons compared to 1.699 million tons produced a year ago.

Similarly, NWFP also gave better performance where white refined sugar production rose to 135,669 tons as against 89,352 tons in the corresponding period of last year.

On the other hand Sindh recorded a fall in sugar production this season, and produced 957,308 tons as against 1.223 million tons production of last year (2000-01).

Nevertheless, with lower production in Sindh the sugarcane market became sellers market and as a result growers to some extent benefit more than those of Punjab and NWFP where cane market was in favour of buyers due to higher supply.

APP adds: Federal Minister for Agriculture and Food Khair Mohammad Junejo called upon sugar mills to properly utilize by-products of sugarcane to reduce per kg cost of sugar.

He was speaking at the 37th annual convention of Pakistan Society of Sugar Technologists (PSST) at a local hotel. He said that per kg cost of sugar was very high in the country and it needs to be cut down by adopting various measures.

One of them is the proper utilization of sugarcane by-products like molasses, press bud and use of bagasse for power generation.

“Pakistan was signatory of WTO regime and we must be competitive to dispose our surpluses and be able to provide good price to consumers and return to the producers of raw materials”, he observed.

He suggested sugar mills to use sugarbeet as a new crop to supplement sugarcane with two prong objective. One to enhance farmer’s profitability and second, to extend the crushing period by about 45 days.

He said his ministry was working on the introduction of sugarbeet in Punjab and Sindh. The results were encouraging with regard to yield and recovery of sugar, he added.

Junejo was of the view that introduction of any new crop faces difficulties in the beginning, but it finds ways when force behind is committed and the ministry is committed.—APP