LAHORE: The sugar mills of Pakistan have warned of increasing sugar price if no action was taken against the middle-men, who were causing hike in sugarcane purchase price.
A spokesman for the Pakistan Sugar Mills Association (PSMA) said on Friday the price of sugarcane had crossed Rs300 per 40kg. He said the illegal practices of middle-men were increasing the cost of production of sugar, as there was 80 per cent involvement of sugarcane price in the overall cost. He alleged that the provincial government was not taking effective action against the middle-men.
In Bhakkar only, successful action had been taken against the middle-men, which was producing results. The spokesman said the middle-men purchase sugarcane from farmers on low rates and sell the crop to the mills on higher prices. The issue was also highlighted by a representative of farmers during a meeting of the Sugar Advisory Board in Islamabad. Following that meeting, the Secretary Industries issued directions to the provincial governments to eradicate the middle-men, but they were continuing their illegal practices with impunity, he added. The spokesman said sugar mills were not getting sufficient quantity of sugarcane, which was hampering the crushing operations.
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