ISLAMABAD: The federal and Sindh governments are in a row over the issue of fixing sugarcane support price as the latter has refused to accept Ministry for National Food Security’s demand to raise the price from Rs155 to Rs182 per 40kg.

In a statement issued on Friday, Minister for National Food Security Sikandar Hayat Khan Bosan described Sindh government’s new sugarcane price as “unfair, unjust and arbitrary”, demanding that the provincial government restore the previous notification of Rs182 per 40kg immediately.

Bosan said the Punjab government fixed the price at Rs180 per 40kg while Sindh government at Rs182, but the latter has now reduced it to Rs155.

Sindh Agriculture Minister Ali Nawaz Khan Mahar told Dawn that the Sindh government’s notification in respect of sugarcane price is interim, and it would be withdrawn and reverted to Rs182 when the federal government fixes the new price of sugar.

However, Mahar said the federal government should not interfere in the province’s affairs. He said the recent notification was issued after the Pakistan Sugar Mills Association approached the Sindh High Court to revise the price downward.

He believed that the federal government should have taken the decision on sugarcane price at least four months before the start of crushing season. In Sindh, the crushing season has already delayed by two months, he said.

Bosan, on the other hand, said that as of Dec 5 (Friday) sugar mills had not yet started the crushing of sugarcane which may cause delay in payments to farmers.

The minister said the government will treat mills preferably that kick off crushing immediately and make prompt payments to farmers at the time of purchasing sugar.

Published in Dawn, December 6th, 2014