LAHORE, Nov 28: A meeting between representatives of sugar millers and the Punjab government has failed to resolve the crushing season crisis as none of the sides is willing to give in.

The provincial agriculture, finance and revenue ministers had warned millers of action if the crushing season was not started forthwith. The millers, on the other hand, refused to give in, insisting that administrative solutions to the economic problems seldom work.

Pakistan Sugar Mills Association’s spokesman Shakeel Bhatti said the millers had offered the government to take over mills since they could not run these in the present circumstances.

He maintained the millers would prefer facing a legal action. This would save them from not being in a position to pay the farmers and easing risk of price crash, he added.

Enacted in the 50s, the Cane Act had lost its legal value, he said. The spokesman continued in the 50s, the government used to fix price of sugar cane, sugar and profit margin of the millers but now in the free market economy, legislation like the Cane Act hardly made any sense, he added.

The issue of sugar cane price was also highlighted in the meeting. The new ‘indicative price’ of Rs42 per maund, announced by the federal government, had not officially been conveyed to the provincial government, it was observed.

The ministerial committee pledged to get a clarification from the federal government and get back to the millers by Thursday.

Meanwhile, the PSMA has convened a general body meeting for Thursday (today) to discuss issues relating to the industry.