While talking to Online, the former chairman of Pakistan Sugar Mills Association (PSMA), Sikandar Khan said that last year farmers were paid Rs 240 to 250 per 40 kg but this year it would not be possible for them to pay even support price of sugarcane that is Rs150 to the farmers because government is not ready to purchase their 0.2 million tons sugar on Rs65 per kg and insisting to buy it on Rs53 per kg.
“If government procures sugar at rate of Rs53 per kg then sugar industry would bear a loss of Rs 2.4 billion which will ultimately hit poor farmers badly as sugar mills owner would not be able to pay even reasonable price to the farmers”, he said, adding that it will also discouraging for sugarcane farmers in long term to cultivate sugarcane crop.
He said that Trading Corporation of Pakistan (TCP) had issued a gallop tender for purchase of 200,000 tons of sugar on November 4, 2011 and at that time retail price of sugar was around Rs 65 per kg. The 27 mills of Pakistan Sugar Mills Association submitted their bids of Rs 65 to Rs 66 per kg but TCP used delaying tactics and did not purchase their sugar.
He said that Economic Coordination Committee (ECC) of the Cabinet was informed in its previous meeting that sugar was available at less then Rs60 per kg and keeping in view the sugar price ECC deferred TCP decision for purchasing sugar at Rs65 per kg.
Sikandar Khan said that at present there was no level playing field for the sugar industry because the government had imposed ban on the export of sugar industry as they wanted to export 0.5 million tons surplus sugar on immediate bases.
“The small and poor growers were dependent for their existence on the sale of sugarcane therefore it is the prime and foremost responsibility of the government to take care of their interests first. The government through purchase from local industry would save precious foreign exchange besides helping the farmers of the country”, he said, adding that if the government does not want to buy sugar from the industry, it should be allowed to export which is their legitimate right.(online)
