Sugar mills are purchasing sugarcane at the rate of Rs260-280 per 40 kg, which is much higher than the price of Rs225 fixed by the government, according to a spokesman for the Pakistan Sugar Mills Association (PSMA).
In a statement on Thursday, the spokesman revealed that in some areas, the price of sugarcane had crossed Rs300 per 40 kg mainly owing to the involvement of middlemen.
“This has eventually increased the production cost of sugar to around Rs95 per kg,” he underlined.
In this regard, a delegation of PSMA met recently with the Punjab chief secretary, where the two sides agreed to collaborate with each other.
It was agreed that the government would look into the problems of the sugar industry and would not take any step which would cause harm to consumers. During the meeting, it was decided that ex-mill rates of sugar should not exceed Rs90 per kg. The spokesman revealed that the delegation also met with representatives of federal and provincial governments separately, in which the two sides agreed that the federal government would not fix the price of sugar.
Instead, the price would be decided according to the demand and supply mechanism, the statement said. “But if sugarcane becomes expensive, then it will ultimately increase the production cost of sugar.”
He underlined that the information related to sugarcane, sugar mills, etc had regularly been given to the cane commissioner on a daily basis.
Published in The Express Tribune, December 24th, 2021.
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