LAHORE, Nov 23: Uncertainty prevails over the start of cane crushing in the Punjab, with the provincial government and sugar mills issuing conflicting statements on Friday.

The Punjab government said that the mills had agreed to start crushing from the 30th.

The claim was however rejected by the Pakistan Sugar Mills Association (PSMA) which said the mills in the Punjab would not start crushing unless the government allowed export of 200,000 tons of surplus sugar in the country.

The official announcement, issued on Friday, claimed that the mills had agreed to start crushing after a meeting of their representatives with Finance Minister Tariq Hameed and Revenue Minister Malik Aslam.

It further claimed that the mills would clear Rs 60 million dues of farmers within 15 days of the start of the season and future payment would be made through cheques in 30 days.

In case of default, it said, the millers would pay 12 per cent premium to growers in 60 days.

But a PSMA spokesman contested all the claims, linking the start of the crushing season with the export permission.

“The ministers have promised to get the export permission in a meeting of the Economic Coordination Committee (ECC) being held on the 26th. We did agree but conditionally. If the ECC does not allow the export of surplus sugar, crushing may not start for another three weeks,” he warned.

At present, the spokesman said, sugar was being sold at Rs 20 per kg which did not even meet the cane price.

To the detriment of the sugar industry, he said, the government had hinted at Rs 42 per maund cane support price.

Meanwhile, the Pakistan Kissan Board has flayed the mills for delaying crushing. It said the delay would badly affect wheat sowing.