ISLAMABAD: Delayed payments to sugarcane farmers coupled with persistent shortage of electricity are the main reasons for the decline in sugarcane production this year.

If the current situation persists, the Ministry of National Food Security and Research (MNFSR) fears that farmers would switch over from sugarcane to maize crop.

Sugarcane production has declined by 5.2 per cent during the current year’s crop, reducing to 63 million tonnes against the target of 65m tonnes, official figures released by the MNFSR showed on Wednesday.

The annual meeting of the committee of Agriculture Policy Institute (API) here on Tuesday observed that sugarcane farmers were gradually losing interest in growing sugarcane despite the fact that it is one of the major cash crops of the country.

The shortfall in area target in Punjab and Balochistan was the principal reason for the decline in sugarcane production.

The government had fixed sugarcane production target at 65m tonnes for 2014-15 from an area of 1.13m hectares.

Overall, in terms of area, the decline was 4.1pc, and 1.1pc in terms of yield. The most significant decline was recorded in Punjab where area under cultivation declined by 9.6pc, consequently, production also declined by 9.1pc. On the other hand, Sindh and Khyber Pakhtunkhwa achieved the yield targets except Balochistan which faced a decline of 4.3pc.

Delayed payments to sugarcane farmers by mill owners and persistent shortage of electricity resulting in less supply of water were the main reason for the decline in sugarcane production.

The API committee meeting was of the consensus that sugarcane will be replaced by maize crop in the coming years if the issues facing sugarcane farmers were not given serious consideration. It was also observed that the demand for sugar in comparison with maize is stronger and if sugarcane crop have so many difficulties, for maize it seems hard to sustain after a couple of years.

The Punjab Seed Corporation has already started releasing the high-yielding hybrid maize seeds to farmers in the province.

Against the backdrop of this situation, Minister for National Food Security and Research, Sikandar Hayat Khan Bosan told delegations of farming community that he was not in favour of GST on farm inputs and if GST is reduced to 5 per cent, the cost of sugarcane production would be reduced.

Published in Dawn February 26th , 2015

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