Pakistan Sugar Mills Association (PSMA) and Finance Minister, Asad Umar reportedly did not reach any agreement on the sugarcane and sugar price on Friday, after the latter made it clear that it's not federal government's subject, well-informed sources told Business Recorder.
The PSM team has been in the federal capital for the last three days to convince the authorities that the price of sugarcane at Rs 180 /40 kg and sugar price of Rs 45.80 per kg have no correlation. For this purpose, the sugar millers held meetings with a committee headed by Prime Ministers' Advisor on Commerce, Textile, Industries and Production and Investment, Abdul Razak Dawood comprising of Minister for National Food Security and Research and officials of other Ministries.
The government's team and PSMA's team headed by its Chairman Aslam Faruque held detailed meetings with the government's committee for two consecutive days which remained fruitless. On November 29, 2018, Abdul Razak Dawood took the sugar industry representatives to the Prime Minister's office in the hope that they would be invited to the federal cabinet meeting to give a detailed briefing. However, sugar millers were not allowed to enter the meeting.
An official statement issued after the cabinet meeting states: "the Cabinet also discussed in detail the issue of availability of surplus sugar stock in the country and the pending payments of the growers. It was decided to refer the matter to the Economic Coordination Committee of the Cabinet for detailed deliberations and proposing a workable solution to address the issue on priority basis. The Prime Minister reiterated during the meeting that the interests of the sugarcane farmers will be protected while resolving the issue of sugar mills."
However, on Friday, the Association held a meeting with the Minister for Finance, Asad Umar in the Finance Ministry which was also attended by the Minister for National Food Security and Research Sahibzada Mehboob Sultan and Prime Minister's Advisor, Abdul Razak Dawood.
The sources claimed that Finance Minister was "rude" with the sugar mill owners and asked them to meet with provincial governments as federal government has nothing to do with the subject of sugar. He also asked if sugar mill owners want to discuss this issue with him, then the representatives of provincial governments should also be invited.
According to sources, Abdul Razak Dawood felt that Umer's attitude with mill owners was not appropriate and he then tried to meet Prime Minister Imran Khan for his intervention but the Prime Minister could not meet him as he was otherwise engaged.
When this correspondent inquired from Razak Dawood about the progress in sugar industry's issue he replied "sugar is very sweet."
Aslam Faruque while speaking to Business Recorder asked: "how can the industry start crushing as it cannot bear the loss of Rs 15/kg of sugar given an outstanding amount of Rs 16 billion against the government on account of subsidy?"
He also claimed that the industry has cleared 99 per cent outstanding dues, adding that sugar industry wants the growers to get more than the current rate of cane but the government should also give a good rate while keeping in mind growth and viability of the industry.

Copyright Business Recorder, 2018

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