Millers refuse to start crushing season

Pakistan's sugar mills will delay the crushing season until deregulation and surplus stock export issues are resolved

LAHORE:

Pakistan Sugar Mills Association (Punjab Zone) has announced that they are not going to start crushing season until the industry is fully deregulated.

Following an emergency meeting on Thursday, attended by all important members of the association, the PSMA (Punjab Zone) spokesman said that it was unanimously decided that it was impractical for the sugar industry to start the next crushing season under strict regulations.

Therefore, "it has been decided with complete consensus that the crushing season will not begin until the sugar industry is fully deregulated at provincial and federal levels".

Moreover, the sugar industry wants to work in a free market like that for wheat, rice and corn crops.

The spokesman cautioned the government that mills would not even start operations until the sugar stocks lying at mills were exhausted.

The industry has been seeking permission for export of 1.5 million tons of surplus stock for the past several months, but the government has given the green light for export of around 0.25 million tons.

All Punjab Zone members unanimously decided that the sugar industry would not be able to operate mills as long as the remaining stock of 1.25 million tons was present in warehouses, he said.

"All these measures are being taken for the benefit of farmers because the beginning of next crushing season in the presence of old stock will not be fruitful for growers regarding payments. Apart from this, the sale of sugar in the market is very limited," the spokesman stressed.

"Sugar is the only industry that has been playing its role positively in the form of depositing foreign exchange in the national exchequer for the development and prosperity of the country without any government subsidy and without placing burden on the national grid for meeting its energy needs."