LAHORE: Pakistan Sugar Mills Association Punjab Chapter Chairman Javed Kayani has sought government’s help in making timely payments to growers.

In a statement on Sunday, he says since the sugar mills are obliged to crush the entire crop, it is mandatory to sell the yield for early payments to growers.

He says sugar production process spanned over four months and the yield is sold throughout the year with surplus looming price of sugar remained depressed and forced selling continues in the market to discharge liabilities to growers.

The government must ensure enforcement of the Sugarcane Act-1950 to enable producers to make payments to growers within 15 days from the date of purchase of the crop.

He says sugar sale by mills are limited according to monthly consumption of the country, forcing millers to borrow from banks, which retain a margin against pledge of the produce. “Therefore, in order to discharge liabilities to growers, it is imperative to retrieve full value of cost of production.”

He says the export parity at the moment is Rs36 against Rs60 per kg cost of production, causing a deficit of Rs24 per kg. “It is therefore impossible to make payments to sugarcane growers when the industry is not in a position to recover the cost of sugarcane.”

Kayani says the Indian government has been doling out $64 per ton export rebate on sugar besides giving Rs660 billion as interest-free loans to help and support the sugar industry to make payments to growers. It merits mentioning that the cost of production is lower in India as compared to Pakistan.

The Agriculture Policy Institute Ministry of National Food Security and Research, Islamabad, has strongly suggested to provincial governments not to increase the price of sugarcane this year, as surplus produce already exists in the country. Under the circumstances, the sugar industry is justified to seek support from the government when sugarcane prices are fixed unilaterally for political expediency without taking into account the international scenario, he says.

Published in Dawn, December 29th, 2014

Opinion

Editorial

UAE’s Opec exit
30 Apr, 2026

UAE’s Opec exit

THE UAE’s exit from Opec is another sign of the major geopolitical shifts that are reshaping the global order. One...
Uncertain recovery
30 Apr, 2026

Uncertain recovery

PAKISTAN’S growth projections for the current fiscal present a cautiously hopeful picture, though geopolitical...
Police ‘encounters’
30 Apr, 2026

Police ‘encounters’

THE killing of nine suspects by Punjab’s Crime Control Department across Lahore, Sahiwal and Toba Tek Singh ...
Growth to stability
Updated 29 Apr, 2026

Growth to stability

THE State Bank’s decision to raise its key policy rate by 100 basis points to 11.5pc signals a shift in priorities...
Constitutional order
29 Apr, 2026

Constitutional order

FOLLOWING the passage of the 26th and 27th Amendments, in 2024 and 2025 respectively, jurists and members of the...
Protecting childhood
29 Apr, 2026

Protecting childhood

AN important victory for child protection was secured on Monday with the Punjab Assembly’s passage of the Child...