09 October 2004	Saturday	23 Shaban 1425

LAHORE, Oct 8: Crushing season would start by the end of November, said Pakistan Sugar Mills Association chief Zaka Ashraf here on Friday.

He told newsmen here that release of 50,000 tons of sugar by the Trading Corporation of Pakistan had created a glut in the already volatile market.

Release of another 150,000 tons was in the pipeline. This, he feared, would negatively affect the market. This market surplus has forced the industry to delay the crushing season and waiting for clearing of the glut, he said.

The PSMA chief also claimed that there was 11 per cent reduction in cane production which would result in 25 per cent decline in sugar production this year - it will around 3 million tons against 4 million last year.

He said the association plans to take up matter of closing of mills by the Sindh government with federal government. If the federal government failed to resolve the crisis, the entire industry would go on indefinite strike.

It may be noted that the Sindh government closed down some mills for default on road cess payments. He regretted that zoning was not in the interest of industry but those favouring it have dominated assemblies and were forcing the government to continue with it.