Minfal invites PSMA team to discuss ongoing crisis

Ministry of Food, Agriculture and Livestock (Minfal) has invited the representatives of Pakistan Sugar Mills Association (PSMA) to discuss ongoing crisis in the sugar industry.
A spokesman of Pakistan Sugar Mills Association said here on Monday that the PSMA Punjab Zone has meanwhile convened the general body meeting of the association on July 5, to explain the outcome of meeting with government functionaries.
The PSMA said the present crisis has emerged out of the irrational government policies, putting industry into heavy losses on the one hand and destabilising farmers' incomes on the other hand.
According to the spokesman, the sugar industry procured sugarcane at the rate or Rs 70 per maund in average against announced support price of Rs 60 per maund during last crushing season. Similarly, he added, the industry had paid Rs 100 per maund during year before the last crushing season to the farmers and both the seasons have encouraged the farmers to cultivate record crop of sugarcane for upcoming crushing season and next year Pakistan would be in a better position to export sugar. He said all credit for agriculture growth in sugarcane goes to the sugar industry. Now the industry has been pushed into crisis forcibly by the government, as it kept on intervening into the market through Trading Corporation of Pakistan (TCP) by giving subsidy of Rs 18 billion, which crashed the sugar market badly. Though, the government had assured of stabilising the ex-mill prices at the level of Rs 31 per kg, which was calculated keeping in view the production cost against support price of Rs 60 per maund of sugarcane.
The spokesman further clarified that industry was never in favour of reducing the minimum support price of sugarcane but it is a hard fact that each sugar mill has booked a loss ranging between Rs 120 million to Rs 180 million out of the high cost of sugarcane and low price of sugar prevailing in the market, and that too with no buyers.
He said the farmers' organisations should understand that sugar industry is solely a processing industry and it cannot be held responsible for decrease in minimum support price of cane, as it is the government's policy to ensure the cost of producing sugar. If sugarcane prices go up how the industry could produce cheaper sugar while it is the government's duty to create a balance between the two sides, the spokesman concluded.