KARACHI, Dec 22: The Sugar industry in Sindh has sought federal government’s help in resolving their on-going dispute over minimum sugarcane price fixed by the provincial government for the crushing season 2005-06.

In a meeting held on Thursday, the Pakistan Sugar Mills Association (PSMA), Sindh zone, has attributed the current impasse in sugar industry to two successive notifications issued in a short period of six weeks by the Sindh government.

The participants said that the Sindh government issued its first notification on October 22, 2005, fixing the minimum sugarcane price at Rs48 per 40 kg, and on December 16, issued another notification raising the minimum sugarcane price to Rs60 per 40 kg.

The PSMA Sindh Zone said that all these developments took place against the demand of the sugar industry, seeking a level playing field with the Punjab sugar mills, which pay less minimum support price to the cane growers in their province.

As a result of these notifications, the Sindh PSMA alleged that the normal activity of the industry had been badly affected.

The cane prices were raised by Rs12 per 40 kg within a spell of six weeks which is unbearable for the industry and the frequency of issuance of these notifications has no parallel in the country, the meeting observed.

Having no option the PSMA members were compelled to suspend the sugarcane crushing till normalcy returns and urged the Federal and the Sindh governments’ authorities to review the situation and withdraw the second notification.

The PSMA further pointed out that the second notification to raise the cane prices was not in conformity with the procedure laid down in Sugar Factories Control Act 1950, and also defeats all business norms.

The second notifications, the PSMA added, has prompted the ‘so-called growers’ representatives to capitalize on it by creating a disorderly and inflammatory situation in rural areas as is evident by their threatening slogans of ‘take over sugar mills and inflict damage to the plants’.

The PSMA Sindh zone has sent SOS to the highest offices of the federal and provincial governments seeking protection to sugar mills assets, security to its manpower and creating conducive conditions for peaceful functioning of sugar mills.

The situation is also badly affecting the law and order situation and in case no immediate remedial measures are taken, the PSMA fears that it may jeopardize the interests of the growers, consumers and the industry.

The association cautioned that in case of any untoward incident the law and order situation may go out of control sending negative signals about the government’s policy of promoting investment and creating job opportunities in the country.