Crushing season in Punjab: Probability of enhancing minimum purchase price for sugarcane discussed

LAHORE: Stakeholders of sugar value chain discussed the probability of enhancing minimum purchase price for sugarcane for the coming crushing season in Punjab in line with the input cost and reasonable profitability for the growers to uplift their socio-economic conditions.

Sources told Business Recorder that the provincial Agriculture department proposed to enhance the minimum procurement price from current Rs 190 per maund to Rs 198 per maund while the Agriculture Price Institute (Islamabad) representatives pitched it at Rs 194 per maund.

The meeting which lasted for three hours with the Cane Commissioner Punjab Zaman Wattoo in the chair, being the Chairman of the Sugarcane Control Board Punjab, also took up the proposals from growers and millers.

The sources said that the growers submitted that any price below Rs 350 per maund is not feasible for them keeping in view the input cost and other factors. While the millers' representatives opined that the enhancement should be made in proportion of increase in wheat support price so as the sugarcane remains feasible for sowing for the growers.

The sources also claimed that millers have divided in two groups since the promulgation of Punjab Sugar Factories (Control) (Amendment) Act and the group led by Jahangir Tareen attended today's meeting of the sugarcane board while the group led by Javed Kayyani did not turn up.

They said that the millers termed the recently-promulgated ordinance as unjustifiable and not protecting the millers' right at all.

"We will be sending the proposals submitted by all the sides to the chief minister for final approval," the sources further added.

Meanwhile, representatives of different mills who did not attend the meeting termed the meeting as a flop show saying that major stakeholders, who are cane crushers, did not participate in discussions. Only three to four mills attended the meeting while rest remained absent.

They said that they had requested in written before amendments in the sugar factories (control) act to include sugar mills industry as a major stakeholder in the consultation process. They said that the cane commissioner only sought their proposals in writing and the sugar industry replied that it should be deregulated. Unfortunately, they regretted that the government taking one-sided action imposed an ordinance which had made crushing impossible. They said it is unjustifiable to fix the sugar price without considering the factors determining the sugar price.

Copyright Business Recorder, 2020