LAHORE, March 26: The Pakistan Sugar Mills Association (PSMA) on Monday took exception to the official decision to release 25,000 ton sugar in the middle of crushing season, terming it a “disastrous step for the industry and farmers”. After a meeting of the millers held here on Monday, a spokesman for the industry said the government had again budged on its commitment made to the millers by instructing the Trading Corporation of Pakistan (TCP) to release 25,000 tons of sugar.

Under these circumstances, he said, it was becoming increasingly hard for the millers to keep paying cane growers as mills had lost their financial viability. Every mill was sustaining a loss of Rs120 million to Rs130 million, he claimed.

In the beginning of the season, the government had pledged that it would not release its stocks as long as ex-mill price remained at Rs31 per kg, he said. “But, it released the stock as soon as the crushing season started. The industry protested and the government promised it would not repeat the mistake. But, now it had again gone back on its words,” he lamented. Currently, he said, the ex-mill price had dropped down to Rs29 per kg against government-allowed Rs31. But, even then the government decided to release additional stocks, he wondered.