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Thursday April 25, 2024

Sugarcane crushing starts in Punjab

By our correspondents
December 01, 2015
LAHORE
All sugar mills in the Punjab province have started crushing of sugarcane on the last day except five which were attached by the cane commissioner Punjab on non-payment of the growers dues of the last year crushing season.
According to an official of the cane commissioner department, out of five sugar mills, only one has sugar stock, which is attached by the department for auction. Once the department will auction sugar and recover the growers’ dues then it will allow that mill to start crushing. However, it all depends on the successful auction of sugar. On the other hand, remaining four mills properties are attached on account of grower dues. The department has started auction process of these mills now once the auction will be completed then the new administration could run these mills, he said.
He pointed out that out of four mills, three are owned by a single group. The group is also Federal Board of Revenue (FBR) defaulter following the excessive duties evasion from the sale of the last year sugar produced by it. The cane department official said that sugarcane growers of these five mills areas would sell their cane to the other mills of the localities. They also have option to move it to some other areas while limit of 40 kilometer radius is also allowed to the mills to collect sugarcane where it is located. Pakistan Sugar Mills Association Chairman Punjab Chapter Javeed Kiyani said that situation was very critical for the industry. He said that past-like situation was also likely to occur again as sugarcane rates were not fixed by the Sindh Province, where it was being sold at Rs150 to 160 per 40kg.
The sugar mills of Sindh had dumped cheap sugar in the Punjab after the 2014-15 crushing season which created financial crisis for the Punjab sugar mills industry. He said hat Central and Northern Punjab sugar mills were still in financial crisis due to last year sugar stocks were with them. On the other hand, the mills of South region are relatively better due to better sugar recovery level, he added. Better quality of sugarcane with highest recovery rate is available for the sugar mills located from Khanewal to onwards.
Javeed Kiyani called for a comprehensive policy for the industry; otherwise, he thought that the framers of Pakistan would be adversely affected. “Only sugarcane crop had saved the farmers during the last couple of years due to good crop and price got by the farmers as compared to the rest of the crops, in which growers incurred huge losses”, he said, adding that if such situation prevailed the sugarcane growers would also be affected which would increase agony among the farmers community against the government.