ISLAMABAD, Nov 28: Amid voices of looming sugar crisis, the government has convened a meeting of all stakeholders here on Friday to finalize a consensus date for crushing season, official sources told Dawn.
To be presided over by Minister for Industries and Production Liaqat Ali Khan Jatoi, the meeting would be attended by representatives of the Sindh government, sugarcane growers and Pakistan Sugar Mills Association (PSMA).
The PSMA had threatened the government to shut down their mills immediately for what they claimed crashing sugar prices that was followed by Jatoi’s warning early this week to the mills to start crushing immediately.
Mr. Jatoi believed that growers would not be interested in sugarcane cultivation next seasons if they were not paid due price for their produce this time around, which might result in sugar crisis.
The PSMA, however, believed that the industry had already plunged into a crisis this season. The PSMA claimed that sugar prices have plummeted to Rs18.50 per kg because of carried over surplus stock and fresh crushing, and the industry was no longer viable as a result of huge cash losses on daily basis. A market survey in the Rawalpindi and Islamabad, however, suggests that per kg sugar price was still around Rs22 in the retail market.
In a notice to the government on Thursday, the PSMA has asked the newly elected government to rescue the industry and to allow export on self-finance basis otherwise the consequences will be a default in payments to growers, banks and government dues or “we will be forced to shut down.”
The sources said that the minister was informed at a meeting that crushing season has been delayed in Sindh by the sugar mill owners, which was creating a lot of hardships for the growers.
The growers were not only getting depressed sugar rates but were also losing in weight as the sugarcane was drying out.
The sugar mill owners have been demanding levy of regulatory duty on imported sugar but the finance ministry had refused to entertain the demand for the fact that crushing season was not in full swing and that there were no reports of sugar import.
The sources said that the industries minister was of the view that the demand of sugar mills association should be looked into and be decided on merit after taking into consideration all the facts and figures but the growers should not be deprived of their due right.