LAHORE, Feb 22: The government should evolve long and short-term policies after taking all stakeholders into confidence, besides lifting ban on setting up of new mills to avert sugar crisis in the country.

This was the consensus among speakers at a seminar on sugar crisis at the Lahore Chamber of Commerce and Industry (LCCI) here on Wednesday.

The speakers were also unanimous that the government was responsible for not educating growers to increase per acre yield of the sugarcane.

Listing reasons for the sugar crisis which was turning grave with every passing day, the speakers urged the government to reduce sales tax on the commodity so that relief could be passed on to consumers.

Some speakers also urged the government to ensure lifting of stocks lying with mills. At present, some 800,000 ton sugar was lying with the millers.

They also called for a fair sugar policy, ensuring justice and transparency for all stakeholders to avoid recurring of the crisis.

LCCI president Mian Shafqat Ali said the sugar price had attained extraordinary proportions. The price had at least doubled during the last one year.

There was a complete breakdown of local supply lines though the Trading Corporation of Pakistan had a stock of 250,000 ton sugar and mill owners another 750,000 ton, which were sufficient to bridge the supply and demand gap of one million ton.

LCCI vice-president Aftab Ahmad Vohra said the crisis was partially due to the wrong practice being done by middlemen involved in this business. There was a need to take drastic measures to eliminate this menace.

He also urged growers to adopt modern techniques so that more areas could come under cultivation and bigger crop could be produced.

Mansoor Ahmad said consumers had to pay Rs64 billion extra due to this situation. Last year, the sugar price was $225 per ton in the international market and in Pakistan its price should have been Rs13.50 per kg. The Pakistani people were forced to purchase sugar at the rate of Rs23 per kg and the profiteers earned 90 per cent.

Makhdoom Sheharyar said the delay in crushing season was also hitting growers hard while benefiting the millers as the delayed crushing season always increase sugar content in sugarcane and decrease its weight. The government should ensure timely crushing of the sugarcane. He said the permission to put in new sugar plants would also help dilute the ongoing crisis.

Chaudhry Waheed of the Pakistan Sugar Mills Association expressed the fear that the crisis would aggravate if right measures were not taken in time.