The provincial government of K-P is requested to take up the issues of subsidy on the export of sugar
PESHAWAR: Sugarcane is an important cash crop of Pakistan. It is sown in a large area of the country. Linked with it is a viable industry. The sugar industry is the second largest agro-based industry in the country, producing refined sugar from sugarcane. Some portion of the crop is also used for the production of brown sugar, locally known as gur, especially in Khyber-Pakhtunkhwa (K-P).
Sugarcane is a long duration crop compared to other cash crops grown in the country. It requires great skill and huge investment in the form of inputs on the part of farmers to grow this labour-intensive and cost-oriented crop. Farmers face a host of problems in the form of increase in the cost of inputs, high labour rates, and water charges. However, at the end of the day, the farmers are at the mercy of the sugar mills and are unable to break even the cost of production of the crop to have both ends meet.
A meeting of the newly reconstituted K-P Sugarcane Control Board held on November 22 urged the federal government to allow a subsidy on the export of sugar, exempt sugar from sales tax and direct the millers to divert the amount received from these incentives to the growers, who are demanding an increase in the price of sugarcane. The Board also took on a number of issues facing the growers and other stakeholders. Increase in the prices of sugarcane remained the focus of discussion in the meeting.
It merits mention that the Economic Coordination Committee (ECC) of the Cabinet, in its meeting held on December 24 had allowed sugar mills in Punjab and Sindh a subsidy of Rs10 per kilogramme on the export of sugar, but the mill owners of K-P were deprived of such incentives. Also, keeping in view the surplus sugar production, the ECC had allowed the subsidies in a bid to enable sugar exporters to compete with the international market prices. K-P and exporters of other provinces were demanding a 50 per cent subsidy from the federal government.
The provincial government of K-P is requested to take up the issues of subsidy on the export of sugar and its exemption from sales tax. This will enable the millers to divert the amount of subsidy as received to the farmers in the form of high prices and hence, better returns to them.
Faraz Khan
Published in The Express Tribune, November 27th, 2016.
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