Complaints of unwarranted deductions by sugar mills from payments to farmers and buying cheap sugarcane through brokers have emerged within a fortnight after the crushing season began.
Local farmers alleged that the produce had been bought at low prices on the pretext of variety, while deduction of more than Rs22,000 per trolley was also being made. They said tractor trolleys loaded with sugarcane of farmers not giving in to the practices were driven out of the mills, where commission agents were operating.
Kisan Bachao Tehreek Chairman Chaudhry Mohammad Yasin, Kisan Foundation Chairman Syed Mehmoodul Haq Bukhari and Anjuman Tahafuz Kashtkaran leader Sardar Yaqoob Sindhu said while speaking to reporters that the fertiliser, seed and sugar mafias were destroying the agricultural economy.
They said sugarcane cultivation in Punjab and Sindh this year had been about 600,000 acres less than the past, and might reduce further in the next season.
The government had amended the Sugar Factories Act and introduced stricter penalties for malpractices three years ago, but action in this regard did not last long, the leaders said.
They said the Punjab government had fixed a price Rs25 per maund lower than that in Sindh.
Compared to the last year, sugarcane has been cultivated on 381,000 acres less in Punjab.
Chaudhry Yasin said the price of cotton had also been lower than the announced rate. Sugar mills had begun operation after the time for wheat cultivation was over, thus the farmers were unable to switch to new crops. Growers of maize had also suffered losses.
Sardar Yaqoob said sugar mills had been allowed by the government to export 250,000 tonnes of sugar a few months ago, resulting in smuggling and a hike in the price of the commodity to Rs185 per kg.
Read Farmers on the edge over sugarcane price
Despite the mills having bought sugarcane at low prices last season, they had forced the Punjab government to increase the price of sugar.
Now, amidst an increase in prices and lack of export, the mills are resorting to various tactics to exploit the farmers, he alleged.
However, an official of the Pakistan Sugar Mills Association said the prices had been negatively affected by last season's carryover stocks due to low exports and restrictions on the inter-provincial transport of the commodity.
He said that despite repeated requests by the sugar industry for export or purchase of excess stocks through the Trading Corporation of Pakistan (TCP) for strategic reserves, government support has not yet been received.
He said it would be impossible for the mills to produce sugar and sell it at less than the cost of production. A farmer said the mills got several by-products while producing sugar, which were sold or utilised in other units.
He said the report of a commission formed to look into matters related to the sector should be made public and timely payment of dues to the farmers ensured.
Two weeks after the commencement of the sugar crushing season, the sugar market has fallen under the influence of speculators. The price of sugar has risen by Rs1,700 per sack, surging from Rs11,500 to Rs13,200.
Balochistan has experienced the most significant increase, attributed to the growing demand for sugar in neighbouring Afghanistan, Quetta, and Sibi, resulting in a sudden surge in the sugar market. With the disappearance of 50 kg sugar bags, the price of a 50 kg sugar bag has surged by Rs1,000, reaching Rs9,000. Following a price hike of Rs20 per kg, the retail price of sugar has increased from Rs180 to Rs200.
Published in The Express Tribune, December 15th, 2023.
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