Sweet and sour: Sugarcane farmers object over price set by mills

Mills set sugarcane buying price as govt delays usual intervention.

PESHAWAR: Sugarcane farmers in Khyber-Pakhtunkhwa (K-P) are elated by the harvest of a bumper crop this year but the government’s delay in setting a minimum selling price has soured their happiness.

Every year, the price at which sugarcane is sold to sugar mills is usually set by the government in consultation with the Kisan Board before the start of the processing season. The main purpose of a price floor is to protect the farmers’ interests as their costs are ever-increasing.



However, this year mills have unilaterally declared the buying price to be Rs10 higher than last year’s price per 40 kilogrammes (kg), without keeping in mind the cost incurred to farmers or taking them in confidence since there has been no initiative taken by the authorities.

“Sugar mills purchase and crush sugarcane without considering the rising cost of the primary sector,” said Provincial Kisan Board Vice-President Abdul Akbar Khan.

According to the estimation of the Provincial Kisan Board, currently the cost of production of the crop till it is brought to the mills has crossed Rs300 per 40 kg.

Sugarcane, being a sensitive crop, produces lesser amount of sugar per hectare as it reduces during transportation and handling.

“We are going to protest and halt supply to mills if we do not get the due price for our product,” said Akbar.



Provincial Cane Board member Arbab Jamil Khan told The Express Tribune the price is fixed every year before the crushing season and they will soon hold a meeting in which basic and support prices will be set. “The price of sugarcane is set keeping in mind the sugar market. Since there has not been an increase in price of sugar so far there will not be an increase in the price of sugarcane.”

Farmers, on the other hand, dislike the idea of fixing the price on the basis of price of sugar as sugar mills have other products to earn from whereas the cost for cane growers has almost doubled.

They expressed their community is more than ready to discontinue supply to mills and use it themselves to make gurh
(jaggery).

“Earlier when we got fed up of the mill owners’ behaviour earlier, we started making gurh and even exported it to Afghanistan and other countries. But a ban was imposed on its export too,” said a farmers’ representative Muhammad Shakil.

He added mill owners are trying to get the maximum benefit for the lowest price from their (the farmers’) hard work.

They demanded the government at least allow export of gurh if they are not ensuring a fair price for sugarcane.

Published in The Express Tribune, November 18^th, 2013.