Sugarcane growers: cabinet decides to resolve issues at CCI level

The federal cabinet has decided to resolve issues of sugarcane growers at the level of Council of Common Interests (CCI) which is also represented by provincial Chief Ministers, well informed sources told Business Recorder. This issue came under discussion at the federal cabinet held on February 6, 2018 presided over by Prime Minister Shahid Khaqan Abbasi who personally has received complaints from the growers and from his cabinet colleagues from Sindh.
The source said, the cabinet was informed that sugarcane growers were facing a crisis-like situation, as the sugar mills were not paying them the fixed support price announced by the provincial governments. And some sugar mills were withholding all payments to the farmers. The cabinet was apprised that the production of sugar was surplus in the country. Furthermore, sugarcane was a water-intensive crop, which put serve stress on the resources of an increasingly water scarce country like Pakistan. Due to distorted incentives provided by the government, sugar is now being increasingly grown in the cotton-growing areas.
The cabinet was further informed that the role of federal government in relieving the difficulties faced by the sugarcane growers also came up under discussion. It was highlighted during the cabinet meeting that this was primarily a provincial subject and if the federal government would like to resolve it, the issue should be raised at the level of Council of Common Interests (CCI).
After detailed discussions, the cabinet directed the Ministry of National Food Security and Research to prepare a summary for the CCI and place it before the CCI for consideration and joint decision by the federal government and the provinces. The Cabinet also urged the Provincial Governments to ensure timely payment of support price fixed by them to the sugarcane growers to redress their grievances.
The Ministry of National Food Security and Research (MNFS&R) has already formulated National Food Security Policy envisaging measures to introduce changes in the country's cropping system and reducing area under rice and sugarcane crops for cultivation of high value crops, such as oilseeds, pulses, soybean, horticulture crops and fodder. The policy is with the Cabinet Division and on the agenda of the federal cabinet but was not considered probably due to paucity of time.
According to sources, the CCI in its last meeting decided that since agriculture is devolved to the provinces, the federal government does not have any role in sugarcane issues including fixation of sugarcane price from next year. The provincial governments were directed to deal with the subject individually. However, since the growers are not being paid the announced price of sugarcane, this issue is being taken up at different federal and provincial levels. Textile Division has also proposed that provinces should stop granting permission for setting up new sugar mills in the cotton growing areas that accounts for a decline in cotton plantation. The sources said increase in number of sugar mills with enhancement in crushing capacity of existing mills in major cotton growing areas has resulted in 22 percent reduction in cotton areas over the last 10 years.