KARACHI, Aug 12: Sugar mills in Sindh fear acute liquidity crunch and financial constraints with the start of new crushing season owing to huge carryover stock of over 0.385 million tons.

In a meeting held under the aegis of Pakistan Sugar Mills Association (Sindh zone) the latest situation about sugar stock came under review. It was noted with great concern that unsold stock lying with the sugar mills of Sindh formed a hefty 41 per cent of the sugar production at 957,308 tons for the current 2001-02 season.

With an average sugar lifting at 63,600 tons per month, derived from the lifting in aggregate of 0.573 million tons during the past seven months at a stretch, the disposal of the balance inventory at 0.385 tons could normally extend to a further six month time.

In view of highly optimistic estimates of the ensuing season 2002-03, reports coming of a bumper sugarcane crop in the country barring Sindh for want of adequate and timely water supplies, the sugarcane and sugar production estimates have been of a sizable surplus situation to shape.

In the emerging situation the meeting observed the sugar millers were of firm view that the Sindh sugar industry would not be in a position to begin the next sugarcane crushing campaign and sugar production until its existing stock were exhausted.