Clearing growers' dues: government urged to purchase sugar from mills

Sugar millers have demanded of the government to purchase at least 300,000 tons of sugar from them so that they could be able to pay off the outstanding dues of sugarcane growers before the upcoming crushing season, Business Recorder has learnt. The millers have to pay Rs 10 billion to the growers.
Source in Pakistan Sugar Mills Association (PSMA) told Business Recorder that the association had asked the government to buy at least 300,000 tonnes of sugar from millers to facilitate them to clear the growers' outstanding. They said the government had not procured sufficient quantity of sugar from the millers despite their request to purchase at least 200,000 to 300,000 tonnes of sugar.
They said that members of the association were facing tremendous pressure from growers to clear the outstanding and it could be expedited if the government purchase sugar from them to build a strategic reserve at the current ex-mill price of Rs 62-63, which was lowest in the world. They said millers had to pay Rs 10 billion to the growers before the start of new crushing season, while they had already cleared Rs 210 billions due of growers.
They said the sugar millers had no options but to sell sugar stocks at lower prices as they had to pay off the growers' dues. It is worth mentioning here that the Ministry of Industries and Production (MoI&P) had earlier urged the government to procure sugar from local mills through Utility Stores Corporation and TCP to build strategic reserves.