Sugar mills face bankruptcies, says PSMA

ISLAMABAD: The Pakistan Sugar Mills Association (PSMA), a lobbying group of sugar millers, has dismissed the talk of making billions of rupees with regular price increases, saying the industry has instead faced bankruptcies over the last few years.

“Sugar price remained subdued due to a glut in the local market and also the sugar price in the international market was at a very low level that’s why the industry faced nine bankruptcies during the last few years,” claimed PSMA Chairman Javed Kayani in a statement.

He said four mills had been completely shut down and the industry had not been able to break-even at a previously prevailing sugar price and requested the provincial government to review the sugarcane price in order to survive.

“The price of sugar is determined by market forces whereas the support price of sugarcane is fixed by provincial governments.

Published in The Express Tribune, January 13^th, 2017.

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