Pakistan Sugar Mills Association (PSMA), Punjab Zone, has called an emergency meeting of its members on Thursday, July 5, to discuss ongoing sugar crisis. It will be presided over by PSMA Chairman Zaka Ashraf.
The PSMA spokesman said that members of PSMA Punjab Zone would discuss in detail the problems being faced by them in the face of mounting crisis of sugar industry. The PSMA members would also chalk out modalities to encounter the crisis as according to the present situation no mill would be in a position to start the next crushing season.
The crisis started when the sugar mills started the crushing season 2006-07 as per promise and understanding reached with the federal government. However, the government backed out of its commitment as soon as the crushing started, and started to offload subsidised sugar in bulk, which crashed the market. The subsidy amount in total comes to Rs 18 billion.
Zaka Ashraf would also apprise the members about his meeting with policymakers in the Ministry of Food, Agriculture and Livestock on the issue of buffer stocks to be built by the government as agreed last year at price of Rs 31 per kg. The members would also be briefed on PSMA's meeting with Planning Commission at Islamabad regarding power co-generation, which could help the country to overcome its power shortage.