HYDERABAD: Fears of another belated commencement of sugar cane crushing season haunt sugar cane growers in Sindh considering the fact that government’s initiative to kick start the process of starting negotiations with sugar millers and growers to fix cane price for 2018-19 season is not in sight yet.

No meeting has been convened by Sindh agriculture department to start negotiations between millers and sugar cane growers over fixation of cane’s indicative price and commencement of crushing season as required under law.

Sindh’s growers expect provincial agriculture department expect provincial agriculture department to convene meeting as soon as possible so that sugar cane crushing season is not jeopardised.

Belated start of crushing of crop involves a cost on the part of sugar cane producers as they are required to provide irrigation water to their crop in fields which is otherwise to be utilised for wheat sowing of winter season.

For last few years Sindh has been witnessing a serious controversy over fixation of sugar cane price as millers and growers come up with their own rationale to demand per 40kg price for sugar cane with the result that crushing of sugar cane crop gets delayed.

Sindh agriculture department is supposed to convene a meeting of representatives of Pakistan Sugar Mills Association (PSMA) Sindh zone and representatives of growers’ bodies – Sindh Chamber of Agriculture, Sindh Abadgar Board and Sindh Abadgar Ittehad by Sept-October period.

Sindh Chamber of Agriculture vice president Nabi Bux Sathio fears PSMA would again be linking price fixation with subsidy on sugar’s export by the federal government. “We feel that one group of industries that deals in sugar cane sector in lower Sindh sector mainly as it owns most mills here is facing money laundering probe. Their accounts are frozen and if this investigation continue then very group will come up with excuse of frozen account for not starting crushing of sugar cane,” he says.

He says that mills must start crushing as required and court could appoint receiver on those sugar mills that are facing litigation but they should not be allowed to jeopardise entire sugar cane season for sugar cane producers.

He apprehends that Tarbela dam that ensures supplies to Sindh mainly is depleting fast on a daily basis. If current depletion trends continue, he adds, then the water shortage in Sindh once again couldn’t be ruled out.

In that case, he says, survival of sugar cane crop will become difficult if crop is not harvested. He also doesn’t rule out 35pc to 40pc drop in overall sugarcane crop in Sindh due to back to back controversy over crop’s price which has discouraged sugar cane growers to cultivate it.

“Writing letter to agriculture department is a symbolic exercise. The earlier the crushing season starts the better for everyone,” said Mahmood Nawaz Shah, vice president Sindh Abadgar Board (SAB).

He said that his organisation would formally write a letter to Sindh agriculture department in next few days but even without such initiative the government must start process of holding meetings with millers as it required multiple sittings to come to an agreement or decision.

Sugar millers in last season didn’t pay notified price of Rs182/40kg announced by Sindh government and moved Sindh High Court where the court decided that millers should pay Rs160/40kg to sugar cane growers and differential amount Rs22 per 40kg would be paid once an identical petition over question of sugar cane price in Sindh was decided by the apex court.

PSMA Sindh zone representatives have been questioning price fixation mechanism under Sugar Factories Control Act 1950 on the ground that price of sugar should also be determined by Sindh government in addition to sugar cane’s price.

Although Sindh High Court decided that Rs160/40kg would be paid to growers but millers, according to growers’ leaders, didn’t pay that price whereas their liabilities were also accumulating.

PSMA believes that their cost of per kilogram of sugar makes it extremely difficult to pay Rs182/40kg to sugar cane growers. They want the price to be fixed on lesser side like Rs140/40kg to Rs150/40kg.

Sindh cane commissioner Agha Abdul Rahim confirmed on Saturday that no meeting had been conveyed yet by agriculture department. He said that sugar cane crushing was to start in November and hopefully process of price fixation would be started by government.

Published in Dawn, September 16th, 2018