The sugar mills of Sindh and Baluchistan have agreed to start the crushing season from December 18 after their representatives’ meeting with the Minister of Industries and Production, Mr. Liaqat Ali Jatoi. But the damage to farmers has already been done. Not only their standing crop of sugarcane has lost weight but also they have failed to sow the Rabi crop in time.
The country has always seen a conflict of interests between growers and sugar mills owners, every year at the start of the sugar-cane crushing season. But this year the situation has become too much alarming, particularly in Sindh, where sugar mills did not start crushing until mid-December, despite repeated orders from the government.
The sugar mills delayed the crushing arguing that there is a huge surplus of 0.5 million tones of the sugar produced last year (0.2 million tons in Sindh alone). As there are no storage facilities and export is not allowed by the government, it is not in the interest of the industry to start crushing. Besides, they were not willing to pay Rs50 per 40 kg as demanded by the growers and were insisting on Rs36 per maund.
This situation took an interesting turn on November 18, when the Sindh government issued show cause notices to 27 mills for not starting crushing by November 15,the date fixed by the government for the start of crushing season 2002. The cane commissioner of Sindh said that this action was taken in view of the delaying tactics of the mill owners, which had caused unrest among the growers. Though the mills were threatened with stern action, under section 21 of Sugar Factories Control Act, which provides for rigorous imprisonment of up to one year, no action was taken on the ground.
The results of this delay have been devastating. According to Syed Haji Nadeem Shah of Sindh Abadgars, the weight of the sugarcane in the fields has already declined 10 to 20 per cent. Moreover, wheat could not be sown at the right time in an estimated 9 million acre of land. This is not only a big financial loss to poor farmers but may also result in the shortage of wheat in the country during the coming season. Reports reaching from southern Punjab also indicate that the wheat sowing target remained unachieved due to this delay.
It may be noted here that in some areas of the country, the sugarcane crop was hit by certain diseases, due to which experts are expecting nearly 40 per cent decline in its weight. Where the farmers got 700 maunds or more per acre last year, the output is estimated around 400 to 450 maunds per acre. This has been an additional blow to the growers.
The sugar mills have agreed to start crushing only after the minister of industries and production agreed in principle to allow the export of surplus sugar along with rebate on its export. Moreover, the support price of sugarcane has been fixed at Rs43 per 40 kg. The ultimate losers have been the growers, who have no other option but to sell their dying crop for the said price.
It is true that some of the problems being faced by the sugar mills owners are genuine and should be dealt with immediately. The government functionaries must act effectively to create proper storage facilities for surplus sugar. Surplus is never a problem. The problem is how to convert it into additional profit. There is no harm in finding exports outlets for the additional sugar we have, provided it does not result in increasing the price of commodity at home. The prospects of export to India look very bleak in the wake of ongoing tension between the two countries. Similarly the talk of Afghan traders picking up 20,000 tones of Pak sugar at rates higher than in the international market has not materialized yet.
No doubt this situation is really worrisome for sugar mill owners. But they must not be trying to cash on the financial difficulties of the poor farmers. Delay in crushing season is not the only tactic they apply, as the farmers are also harassed through late payments (no payments in some cases) as well as by under-weighing and other tactics by middle men mill owner nexus. The DCOs of various districts in Punjab have reportedly presented a list of 12 defaulter mills, owing Rs 45.8 million to the farmers of Punjab alone, to the cane commissioner. It is enough to gauge the gravity of the situation.
As the sugar mill owners are influential enough to lobby for their demands and get them accepted by the government, poor growers are always left looking towards the heaven for the solutions of their grievances. Why does the government not include the clearance of dues to the growers in its talks with the Pakistan Sugar Mills Association (PSMA), is a burning question.
While the steps for the protection of sugar industry are necessary, the interests of sugarcane farmers must also be kept in mind at the same time. A long term and balanced approach is needed to develop sugar industry, for the advantage of industrialists, growers and consumers. A fair pricing mechanism is necessary to protect the growers’ interests. Moreover, they should also be given relief in taxes like ‘abyana’. It is high time for both provincial and federal governments’ functionaries involved with agriculture to evolve a national plan of action in this regard immediately. This is necessary to guard the growers from exploitation of powerful millers.