Initially, the price of sugarcane in Sindh was fixed at Rs182 per 40 kg, however, SHC has given relief of Rs10 per maund. PHOTO: FILE
The Punjab zone of the Pakistan Sugar Mills Association (PSMA) is demanding the government to provide interest-free loans at a three- or five-year term to safeguard sugarcane growers in the province.
According to PSMA Punjab Chairman Javed Kiyani, without government loans, payments to sugarcane growers of around Rs40 billion would be stuck by the end of the crushing season.
PSMA officials said that after Sindh High Court’s decision, the provincial government is paying Rs12 per maund to sugarcane growers of Sindh as a contribution; hence Punjab government should also follow the court’s decision to protect the grower’s interest.
Kiyani said that SHC, in a constitutional petition with the concurrence of all stakeholders, concluded that sugarcane price for the season 2014-15 would be Rs172 per 40 kg in Sindh, out of which the government has undertaken to contribute Rs12 for onward payment to sugarcane growers.
Initially, the price of sugarcane in Sindh was fixed at Rs182 per 40 kg. However, SHC has given relief of Rs10 per maund while the Sindh government also contributed Rs12 per maund. Hence, sugar mills of Sindh are now paying Rs160 per maund to growers.
On the other hand, sugar mills of Punjab are paying Rs180 per 40 kg price to growers. Kiyani said that the Punjab government should also lower the price of sugarcane in order to safeguard the growers’ payments.
He said that if the government cannot lower the price of sugarcane, then at least some kind of interest-free loan should be provided to give some relief.
Quoting payments made to growers during the ongoing crushing season, Kiyani added that according to the Punjab Cane Commission’s statistics, Rs95 billion out of Rs110 billion are paid to growers. The season continues to suffer cash problems and would probably close with almost Rs40 billions of payment due on industry, opined the chief.
trade.Published in The Express Tribune, March 27th, 2015.
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