ALMOST half of Sindh’s sugar mills suspended crushing by the middle of this month, owing to ‘no’ or ‘scant’ cane supplies.

These sugar mills — mainly belonging to one group — started crushing on November 15 as per the understanding reached with growers on cane price in Oct 7 meeting in Karachi. But, the millers said, sugarcane growers stopped supplying cane hoping that mills would increase the cane rate.

“We closed our mills in line with the policy of the Pakistan Sugar Mills Association, being its member, otherwise we were getting normal supplies of sugarcane. The PSMA took this decision to suspend crushing in the wake of inadequate supplies of sugarcane to other mills”, says Mohammad Ali Shah Jamote, owner of Matiari sugar mills, which commences crushing in late October or early November every season.

According to the office of Sindh Cane Commissioner, 16-17 sugar mills had stopped operations on December 14

To resolve the issue, the provincial Agriculture Minister Sohail Anwar Siyal has convened a meeting of millers and cane producers on Dec 20 in Karachi.

According to the office of Sindh Cane Commissioner, 16-17 sugar mills had stopped operations on Dec 14. These mills had submitted in writing to his office that growers were withholding their produce and had decreased supplying sugarcane to 1,000-2,000 metric tonnes per day against their daily requirements, of about 5,000 metric tonnes.

Sindh has 38 sugar mills. The provincial government had fixed Rs182/40kg cane rate for 2016-17 season.

According to growers, farmers indeed are anticipating an increase in sugarcane rates as it is normal in peak crushing season for mills to start offering an increased rate.

Growers’ representative argue that cane supplies may not be reaching mills but only in cases where either the mills have resorted to unjustified deductions on account of cane yields or in areas reporting lower harvest. The mills are, therefore, in competition and their sugarcane is being supplied to other sugar factories.

The Sindh Chamber of Agriculture General Secretary Nabi Sathio pointed out that he himself provided sugarcane to a sugar mill in Thatta whilst he grows sugarcane in Tando Mohammad Khan district. He got Rs225/40kg inclusive of transportation charges of Rs21 per 40kg.

Sathio estimates 70pc less cane production in Badin and Thatta and around 15-20pc less output in Tando Mohammad Khan. And this is prompting growers to supply cane to mills offering a rate higher than the fixed price. Until the crushing was suspended, an increase of Rs2-3 per 40kg in procurement price was being reported on a daily basis, he said.

Interestingly, in upper Sindh, crushing goes on sans any complaint of deductions by mills in less yielding

crop or without any controversy over sugarcane prices. These mills even offer more than the officially fixed rate to growers.

Sindh Abadgar Board President Abdul Majeed Nizamani pointed out that certain millers’ indifferent attitude kept farmers at bay from their mills.

The suspension of mill operations has put thousands of daily-wage workers, engaged in cane harvesting out of jobs and has also hurt the transportation business.

Published in Dawn, Business & Finance weekly, December 26th, 2016