LAHORE, Aug 28: The Pakistan Sugar Mills Association (PSMA) has decided to commence the crushing season in the Punjab on December 15 in view of surplus sugar stocks in the country.

The decision was taken by the Punjab PSMA at a meeting held on Thursday.

Under the law, sugar factories can delay the start of crushing as late as November 30. It means that their decision to delay the start of the crushing till the middle of December will be a violation of the law.

The millers claim that around 700,000 tons of surplus sugar — 300,000 tons with stockists and 400,000 tons with the mills — is still lying unsold. The PSMA also claims that they are selling their sugar at Rs17.25 per kilogram (ex-mill rate) that was far below than their production cost. They put the breakeven rate for the mills at Rs20-21 per kg. They say depressed local prices and failure of the government to help them export their surplus stocks had rendered the industry unviable.

A news release issued here on Thursday said the mills had been forced to take “drastic measures to steer the industry out of the persisting crisis.”

Punjab PSMA chairman Javed Kayani said the association had set up a committee to review and monitor the stock position from time to time and “its decisions would be executed in letter and spirit for crisis management.”

The press release quoted the chairman as saying the industry had not produced surplus sugar by its own choice and it was justified to demand supportive measures. The establishment of sugar board was probably the only solution for the industry’s problem, it added.