NiceFarmer
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LAHORE - The payment of Rs 225 billion to the sugarcane growers by the millers is now on stake, as the federal government is neither purchasing the surplus sugar stock nor it is allowing the manufacturers to export it, enabling them to make in-time payment to the farmers.
Presently, the sugar mills owed Rs 25-30 billion to the banks, besides they have to pay around Rs 225 billion to the farmers while next year sugarcane crop of around 60 million tons also awaiting. So, the government should evolve a mechanism to timely purchase the sugar from the millers to ensure the in-time payment of Rs 225 billion to the farmers, which is now on stake only due to the government, industry sources told The Nation. If the government does not purchase sugar at Rs 65 per kg, then industry should be allowed to export the commodity up to 500,000 tonnes as the countrys demand of sugar is 4.3 to 4.4 million tonnes and it would have a surplus in the current season, sources said, adding export of surplus commodity should be allowed to save the industry as well as the farmers.
The export of the present surplus stock would enhance the liquidity of sugar mills which would enable millers to make prompt payments to growers during the next crushing season. Last year, the sugarcane rate stood high, translating into sugar price at Rs 65 per kg, they said. If the government procures 0.2 million tons at Rs 53 per kg against the price of Rs 65, the sugar industry would suffer a massive loss of Rs 2.4 billion that will ultimately hit poor farmers. However mills would not be able to pay farmers even the support price. They added that it is a promising industry, with great potential to energies rural Pakistan, contributing substantially to socio-economic growth and development. Sources suggested that it is imperative that proper advance planning be made before advent of each season in consultation with PSMA for smooth functioning of sugar industry and sugar supplies.
