ISLAMABAD, March 5: The government on Friday constituted a 12-member committee to suggest long-term policy measures to resolve the problems of the sugar industry and the cane growers on a permanent basis.

The committee has been asked to submit its recommendations to the ministry of industries by end of this month for Federal Cabinet consideration. A decision to this effect was taken here on Friday at a meeting of sugar mill representatives and sugarcane growers presided over by minister for Industries and Production Liaquat Ali Jatoi.

The committee comprises the secretaries of industries and production, commerce, food and agriculture, economic adviser of ministry of finance, provincial agriculture secretaries of Sindh, Punjab and NWFP, chairman and provincial heads of Pakistan Sugar Mills Association, president, Kissan Board, Punjab and the president of Sindh Cane Growers Association.

The committee would also suggest short and medium term measures to resolve the current issues of the growers and the millers. The meeting took serious note of the role of middleman between the growers and the millers, which is causing huge financial loss to the growers and the government.

The committee was also asked to suggest strict measures to end the involvement of the middleman.

The meeting also reviewed the progress of cane crushing, sugar production, sugar price situation in the market, procurement of sugar by Trading Corporation of Pakistan and payment of dues to cane growers.

The meeting was informed that the total estimated sugarcane cultivated area during the current season was 1,050,000 HA, the mills have produced over 2.2 million tons sugar in February and total production expected to be more than four million tons by end of crushing season.

The cane crushed by February 15, 2004 was 27.05 million tons and the estimated sugarcane crop production is 52.6 million tons while estimated sugarcane to be crushed during the season is 42.3 million tons.

The meeting was also informed by the cane commissioner, Sindh and the provincial secretary that mills had cleared the Rs980 million Sindh growers arrears. The matter of payment of premium is in the Supreme Court.

The meeting noted with satisfaction that sugar mills of Punjab had paid the entire amount of arrears to the growers. Liaqat Jatoi admitted that the problems of the millers and the growers existed since long and the decisions were taken only on ad-hoc basis.

He said the government had now decided to eliminate the culture of ad-hocism and formulate a long-term policy. He said that all the issues related to sugar industry could be resolved by suggesting the joint recommendations from the millers, growers and the government.

He said that the recommendations of the committee would be submitted to the ECC and the Federal Cabinet for approval. The minister also asked the millers, provincial agriculture departments, and the cane commissioners to resolve the problems of the growers particularly payment to the growers and deduction of per kg sucrose on cane variety.