ISLAMABAD, Jan 28: President Gen Pervez Musharraf and Prime Minister Shaukat Aziz have taken notice of the recent raise in sugar price and asked Punjab and Singh provinces to strictly deal with profiteers.

Sources told Dawn here on Friday that the provisions of Sugar Factories Control Rules, 1950, with undated amendments, were being ignored by the sugar mills who continued to indulge in purchasing sugarcane through mobile purchasing centres/middlemen at 'weigh bridges' erected at over 50 places especially in Punjab.

The middlemen of the sugar mills, sources said, were purchasing sugarcane from farmers at Rs30 to 32 per 40kg against Rs40 per 40kg that has been set by the Punjab government.

"The price of sugar has increased by Rs6 per kg and this is illegal and the government cannot remain indifferent to it," a source said regretting that "vested interest within the government" was encouraging operation of the weigh bridges.

The sources claimed that the sugarcane purchased through middlemen, was 'not' being shown in the production and thereby evading millions of rupees of taxes. On Dec 15, 2004, cane crushed by sugar mills was 54 per cent higher than the corresponding period of the previous year.

Similarly, sugar production and its recovery were higher. "In this mass production of sugar there was no economic justification whatsoever to raise sugar price which is hurting the consumers," an official source said seeking anonymity.

He said that total production of sugarcane was 1.45 million tons as against 1.4 million tons last year, showing an increase of 3.7 per cent. Cane crushed up to Jan 15 was 17.1 millions tons as against 16.16 million tons last year, suggesting an increase of 3.1 per cent. Likewise, the recovery was up by 3.3 per cent.

Pakistan Sugar Mills Association (PASMA) Vice-Chairman Iskander M. Khan, when contacted, confirmed that weigh bridges had been set up in various parts of Punjab to purchase sugarcane on reduced rates from the farmers.

"This is regrettable that some sugar mills are indulging in profiteering by perusing illegal practices relating to purchases," he said. Mr Khan said that he has informed the Central Board of Revenue (CBR) and other agencies concerned about the illegal purchase of sugarcane on reduced rates. "We are hoping that necessary action will be taken by the government to regulate the purchasing centres," he said.