April 01, 2008	Tuesday	Rabi-ul-Awwal 23, 1429

KARACHI, March 31: The sugar advisory board has recommended to the new government to direct the Trading Corporation of Pakistan to buy 500,000 tons of sugar from mills to enable them to pay huge dues to growers.

According to a cautious estimate, growers dues at present stand at Rs2,000 million due to reduction in minimum purchase price of cane by the government from Rs67 to 62 per maund.

Nazar Mohmmad Baloch, member, Sindh Services Tribunal, who has additional charge of Sindh Cane Commissioner, told Dawn on Monday that the huge dues had been accumulated as mills were buying cane at Rs57 per maund, Rs6 less than the official price.

He said that the price was revised downward to help growers sell their crop, which has surpassed the highest crushing volume of 150,000 tons for the season as a result of bumper crop this year.

He said that to avoid a situation similar to that prevailing in the NWFP where growers are burning their stocks due to non- buying by mills, the Sindh government has not only reduced the minimum purchase price but is also facilitating mills to pay growers dues at their convenience.

Taking stock of the situation, the advisory board, which met in Islamabad recently, decided to request the government to buy sugar stocks from the mills through the TCP.

He said that the purchase of sugar by TCP from each mill would be linked with payment to the growers. Half of the payment by the TCP would be made instantly while the remaining half would be made on producing bank payment sheets issued to the growers. The board in its meeting acknowledged the problem currently faced by the mills due to continuous fall in prices of sugar in the local market.

The sugar glut in the market has been created by an increase in sugar production locally as well as availability of Indian sugar in the market. The two factors have resulted in decline in sugar prices.

Mr Baloch admitted that the government did not want to tackle the issue of non-payment to growers by mills with an iron hand because the mills have threatened to close their units if forced for payment without any relief from the government.

He said that sugarcane crop still standing in the field, if not purchased, will be spoiled in the approaching summer causing tremendous loss to the growers.

The cane growers are already in a problem as the labour engaged by them has diverted to wheat fields where harvesting has already begun.

To a query, the additional cane commissioner said that non- payment of dues to growers was a chronic problem and arises in the midst of every crushing season.

For a permanent solution of the crisis, there was a need to make amendment in the Sugarcane Act 1960 to make non-payment a cognizable offence.

He complained that his office was facing problems in addressing complaints from the growers as the mills managements do not respond to the correspondence made in this regard or attend telephones from the commissioner’s office.

They even do not bother to attend meetings called to solve the problem.