Farmers on the edge over sugarcane price

Delay in crushing, high input costs cause anxiety

RAHIM YAR KHAN:

Protesting farmers have expressed concerns over a delay in the notification of sugarcane support price in Punjab as announced by a caretaker provincial minister.

A leader of the farmers said Caretaker Minister Amir Mir had announced on November 7 that the sprice would be Rs400 per maund and the sugar mills would begin crushing on November 20.

The Kisan Ittehad had organised a protest demonstration in Multan on Sunday against what it termed inadequate market and support prices of sugarcane, following similar situations regarding cotton, rice, and maize.

The protesters said the cost of fertilisers, seeds, electricity, diesel, labour, and transportation, coupled with low prices for sugarcane, cotton, rice, and maize is signaling a crisis.

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The farmers' movement in the ongoing election season may also pose challenges for sugar mill owners affiliated with political parties.

According to sources, it has been estimated that 700,000 tons of sugar was smuggled out of the country during the past year, causing a significant loss to the national exchequer.

Despite abundant stocks, the Sugar Advisory Board had permitted the export of only 250,000 tons, taking advantage of which profiteers smuggled the commodity.

Amid allegations of smuggling, security was increased on borders and law enforcement agencies seized sugar from secret warehouses.

Punjab's sugar mill owners, following action on smuggling routes, increased the price from the official Rs90 to Rs140 per kg and later reneged on starting the crushing season on October 28.

Meanwhile, as the wheat cultivation season begins, nitrogenous and phosphorous fertilisers are reportedly disappearing from the market, leading to an increase in their prices.

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A leader of protesting farmers, Chaudhry Muhammad Yasin, said collaborative policymaking by the government and farmers could steer the country towards development by enhancing agricultural production and helping reduce imports.

He said that in addition to an increasing cost of agricultural inputs, a mafia of involved in hoarding and smuggling was exploit the farmers.

He said the sugarcane crushing season was commencing in Sindh and the fields in Punjab also needed to be cleared for wheat cultivation.

Sugarcane cultivation has also decreased due to the financial factors.

A joint meeting of farmer organizations from Punjab and Sindh was organised earlier in Rahim Yar Khan, where the participants expressed their determination to struggle for their rights. They urged the government to ensure availability of fertilisers at official rates.

A leader of a farmers' organisation, Sardar Yaqub, questioned the performance of institutions like the Trading Corporation of Pakistan.

The Federal Board of Revenue (FBR) has initiated stringent monitoring measures to ensure that the sugar mills maintain stocks as per the country’s demand.

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Monitoring teams have been deployed to compile the sales and stock record of all sugar mills.

However, despite the efforts, sugar is being sold at about for Rs170 per kg, far surpassing the government approved rate of Rs100. Ahead of the crushing season farmers lamented the practice of acquiring cheap sugarcane from farmers and selling sugar at inflated prices.

The sugar mills bought cheap sugarcane during the crushing season in 2022-23 due to better harvest and the government did not have to spend foreign exchange to import sugar this year.

But due to the ongoing political instability and weak checks and balances in the country, sugar smuggling and price speculation has hit the consumers.

Published in The Express Tribune, November 18^th, 2023.