Sugarcane growers and millers are jubilant over the federal government's decision regarding purchase of sugar from local mills through Trading Corporation of Pakistan (TCP). TCP floated a tender to procure 200,000 tons sugar from member mills of Pakistan Sugar Mills Association (PSMA) on Friday.
"We are absolutely thankful to the government especially Industries Minister Chaudhry Pervez Elahi procuring 200,000 tons sugar from local mills. This measure will ultimately lead to early crushing," said Ibrahim Mughal, Chairman Pakistan Agri Forum. In reply to a question, Mughal said he has also written a letter to the Prime Minister requesting him to direct the concerned ministries to procure 0.4 million tons sugar from mills as strategic reserves and intervene in the market on need basis.
Meanwhile, Pakistan Sugar Mills Association Chairman Javed Kayani has appreciated the decision taken by ministry of industries to direct Trading Corporation of Pakistan (TCP) for the purchase of 200,000 tons of sugar at the prevailing market prices which are at the lowest ebb during the entire season. Javed Kayani said this step would enable the growers for sowing of wheat, Canola and sunflower on time and will help redress and mitigate their plight, after floods and rains.
He said due to surplus sugar stocks the market has considerably gone down and the decision to take advantage by senior minister of industries is a laudable step. This would greatly facilitate in disposing of sugar stocks, which will remain available at a lower price to the government for meeting with the needs of Utility Stores Corporation and to stabilise the prices in the domestic market.
The industry would be able to start crushing season on time without waiting to exhaust the existing stocks and clean up outstanding loans from commercial banks to avail finances for the purchases of sugarcane for the next crushing season. When contacted, Javed Kayani said PSMA will start crushing very soon so that farmers may not face any problem.