Early crushing main reason behind high sugarcane prices: PSMA

Updated 07 Jan, 2021

LAHORE: The spokesman of Pakistan Sugar Mills Association (PSMA) while commenting on the high sugarcane prices and lower recovery of sugar in cane has said that when the federal government had decided to force the mills to start crushing by 10th November 2020 in the South Punjab and by 15th November 2020 in Central Punjab, PSMA had categorically informed the government and the Ministry that by starting early the sugar contents would be less in cane and apprised them that the cane was not ripe to start the crushing season, in spite of the fact that Sugar Factories Control Act 1950 clarified that the crushing has to commence not later than 30th November of each year.

But because of the Cane Ordinance which has given huge powers to Cane Commissioner Punjab, who immediately issued the orders of the said dates and if the mills did not follow his orders they could face three years imprisonment and Rs 50 lac per day penalty for not following the instructions of Cane Commissioner Punjab. Although this Cane Ordinance is only limited to the Punjab sugar mills whereas in Sindh and KPK such laws to threaten the mills do not exist. As the mills implemented the government’s decision and started the crushing season whereas now the government has started realizing the issue of less production of sugar due to low recovery, due to early start.—PR

Copyright Business Recorder, 2021

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