KARACHI, Oct 11: Sindh sugar mills have decided not to start sugarcane crushing from October 15, 2004, as agreed with the Chief Minishter Dr Arbab Rahim, to mark their protest against fixation of minimum cane price at Rs43 per 40kgs for crushing season 2004-05.

Pakistan Sugar Mills Association Sindh Zone chairman Abdul Wajid addressing a press conference at PSMA Sindh Zone offices expressed the industry's resentment over initiation of crushing season a month earlier that is from October 1, 2004, and then cane price was fixed with a premium of Rs3 per 40kgs.

Assisted by representatives from other sugar mills the PSMA Sindh zone chief said if the government wanted to fix cane prices with a premium of Rs3 then it should allow sugar prices to float on free market mechanism so that the industry could cover its production cost.

Elaborating the PSMA decision, he said if cane prices were not fixed by a rupee higher than those allowed by the Punjab government to sugar mills, the Sindh industry would not start their boilers as a mark of protest against Sindh government decision of fixing cane prices at Rs43 per 40kgs.

He expressed the hope as per past year the Punjab government would once again fix cane prices at Rs40 per 40kg, therefore, Sindh cane prices should be at Rs41 per 40kgs for new season (2004-05).

Responding to a question, Abdul Wajid said that after the lifting of around 400,000 tons of sugar by the TCP the Sindh Sugar Mills have almost fully paid growers dues and there was a possibility that only one per cent may have not been paid due to some genuine reasons.

He regretted that the issue of premium price was resolved with the Sindh government last year but unfortunately when the industry made commitment with the Chief Minister of Sindh for starting their crushing season earlier by 15 days, that is, from October 15, 2004, a notification with regard to cane prices was issued.

The PSMA Sindh chairman said that on getting the notification the industry was taken aback as the government was backing out from last year's commitment, which would again push the industry into financial crisis. He said that a committee of the PSMA would again meet the chief minister Sindh and try to find a way out before the deadline of October 15, 2004.

Giving other details for not starting crushing season earlier than the original date of November 1, as had been practiced in the last so many years, he said that one of the basic reasons was that the industry technically could not come into operation prior to annual maintenance carried out after each crushing season.

Secondly, Abdul Wajid said that it was not possible to mobilise manpower, which normally comes from northern areas of the country, similarly, he said there was a need of large number of trucks for the haulage of cane from fields to industry. Keeping in view these factors, he said even then the industry tried to oblige the government and accepted October 15, 2004 for starting new crushing season.

On the contrary, he said, due to water scarcity, sugarcane crop sowing and maturing period in Sindh was delayed by at least six to eight weeks which means that even November 1, 2004 was not suitable date for starting crushing. The most negative impact of all these issues, he said that if we go for crushing of sugarcane before mid-November 2004, exceptionally low recovery will be achieved.

By taking the crushing season to November 15, 2004, he said the impact of recent rains on standing crop would be positive and that would help improve its yield and recovery. Above all, he said, sugar mills were presently in process of technical preparedness, as during the process, industry requires a lot of repairs and maintenance.

Abdul Wajid said that mills were getting ready by, November 1, 2004 as was decided by the federal ministry of Industries and Production in April this year but recent rains have rendered accessibility to the fields difficult for trucks.

APP adds: Sindh Chief Minister, Dr Arbab Ghulam Rahim on Monday decided to extend the date for start of crushing of sugarcane by sugar mills in Sindh as from October 20.

He took the decision on the demand of a delegation of office- bearers and members of representative association of growers of Sindh, which called on him at Chief Minister's house.

In the meeting the Sindh Government's notification of October 1, 2004 for start of crushing season from October 15 and the situation caused by recent rains came under discussion.

The growers informed the Chief Minister that rain water was still standing on their lands impeding the sugarcane cutting and sought one week more time for mills. The Chief Minister, however, made it clear that sugarcane crushing must start from October 20.

He said the government wants to maintain congenial relationship between sugar mills and abadgars and their interests will be protected in the larger interest of the province. He said any mill starting earlier crushing like Najma Sugar Mill will be given concessions.