LAHORE: The Pakistan Sugar Mills Association (PSMA) has reiterated its claim that mills are not getting sufficient amount of sugarcane hampering the crushing process as well as increasing the prices of commodity.

The Association alleged that it had repeatedly reminded the Punjab government to take strict action against the middlemen of sugarcane but to no avail, which is ultimately causing rise in the price of sugarcane. At present, the price of sugarcane has crossed Rs. 300 per 40 kilogram.

In a statement, the PSMA spokesman said that they are regularly keeping the Punjab government abreast of the rise in sugar prices due to the middlemen. This illegal practice of middlemen is increasing the cost of production of sugar because there is 80 percent involvement of sugarcane price in the overall cost.

He added that the provincial government is not taking effective action against the middlemen. In Bhakkar only, successful action has been taken against these middlemen which is bringing fruitful results but in other districts, action is only limited to papers. The middlemen purchase sugarcane from the farmers on low rates and sell them to sugar mills on higher prices. This practice is giving loss to public, farmers and sugar mills while the only beneficiary turns out to be the middlemen.

The sugar mills urged the government to take strict action against the middlemen so that a stable price of sugar can be maintained.

Copyright Business Recorder, 2022