LAHORE: The Sugar Cane Control Board (SCCB) meeting being held here next week is likely to propose Rs250 per 40kg as the minimum purchase price (MRP) of the sugarcane crop for the crushing season starting in November.

Agriculture, food and other relevant agencies have been asked to work out the cost of production of sugarcane for determining its minimum support price accordingly, said an official.

Last season, the price was fixed at Rs220 per 40kg. This year, it is likely to go up in view of the increase in farm input prices and higher electricity rates for tube wells.

An official privy to the development hopes that the SCCB will propose an increase of at least Rs30 in the previous year’s rate though the final decision will rest with the political government.

Sugarcane sowing has surpassed its target for the second consecutive year. The Punjab Crop Reporting Survey (CRS) data shows that the water-guzzling crop has been planted on 2.148m acres against the target of 1.880m acres, 12pc over and above the target.

Last year, it was planted at 1.920m acres against the target of 1.860m (4pc above the target) whereas a year ago (2019-20), its sowing had fallen 15pc short of the target when it was planted at 1.590m acres against the target of 1.860m acres.

The attraction of sugarcane for the growers is said to be increasing because of successive failures of the cotton crop.

Punjab Cane Commissioner Muhammad Zaman Wattoo expects a healthy and bumper crop this season because of favourable weather conditions.

Responding to a question about the likely sugarcane support price, he says quoting any support price at this stage is premature because it will be decided after the SCCB discusses and agrees on a cost of production of the crop through input from different departments.

Regarding the expected sugar production, he says it is expected that the province will cross the six million tonnes production mark and there will be available around 0.4-0.5 million tonnes of strategic reserves.

Last year, Punjab had produced 5.7m tonnes of sugar while there was a carryover stock of 50,000 to 60,000 tonnes.

Published in Dawn, October 4th, 2021