KARACHI, Oct 17: Sugarcane growers are set for rich cash bargain this season from a crop that is being estimated 35 to 40 per cent less than last year.

“Only a stupid farmer will agree to sell sugarcane crop at officially fixed price of Rs81 for 40 kgs,’’ quipped a leader of the farmers, who indicated that the going price for sugarcane “will not be less than Rs100 for a maund.’’

A senior officer of the Sindh government disclosed that the farmers struck a deal for Rs120 a maund with the industry on Friday. Sugarcane crushing in Sindh is scheduled to commence on Nov 10 after a delay of almost 40 days. As a routine, crushing should begin from Oct 1, but for the last several years the lingering dispute between farmers and sugar industry on payment has delayed the crushing.

“Industry has still to pay about Rs400 million to farmers,’’ Khair Mohammad Junejo, a former federal minister in a caretaker government and a well-known progressive farmer from Sanghar, informed.

He recalled that last season the government had fixed Rs67 for a maund of sugarcane, which was brought down to Rs63 a maund in a tripartite meeting of farmers, industry and the government.

“Yet, the industry defaults on payment,’’ he complained.

Industry, too, seems keen in quick commencement of crushing this season in expectation of handsome returns from markets as sugar shortage is bound to push up prices beyond Rs45 a kg in coming weeks.

“The industry is setting its eyes on rising demand for sugar in December, when Eidul Azha is falling and in January when Ashura falls. Even now sugar is being sold at Rs37 a kg in the market,’’ a farmer in Hyderabad said to justify his demand for Rs100 a maund. Besides, sugarcane, the two other Kharif crops are cotton, which is fetching Rs1,900 a maund from the ginners and rice, which has seen some fall in prices this year because a bumper crop still offers a good return to farmer.

While industry leaders blame farmers for giving “too suppressed’’ figures of sugarcane production this season, the farmers have their own reasoning for fall in production. Farmers estimate a harvest of sugarcane crop at about 11.8 million tons, while industry is looking for at least 14 million tons in Sindh.

Market sources said that a few sugar mills were suffering from acute liquidity problem and there are reports that an established business family having four sugar mills in Sindh was forced to sell one recently to pay off dues to farmers.

“The business family is uncomfortable and looking for interested buyers to dispose of three other mills too,’’ a source in the market said.

“Sugar is one business, which is totally infested with politics,’’ a well-connected businessman said. He said the highest and mighty of the land had direct and indirect stake in half a dozen sugar mills of the province. Then there are ministers, leaders of opposition parties, senators, members of National and provincial assemblies, who own or have stakes in sugar mills and are involved in sugarcane farming.

Shortage of sugarcane production is likely to be met with import of raw sugar, which will keep the sugar mills operative in a big part of the season and hence good money.