Sugar mills commence crushing season

Urge the govt to start buying refined sugar to increase liquidity.

LAHORE: In order to facilitate growers, sugar mills have started crushing season of sugarcane and maintained that they have fulfilled their corporate obligation. The sugar industry has started crushing season in November, while it was started in December last year.

The mill owners say that now, it is the turn of the government to speed up process of buying 0.2 million stocks from the sugar mills in order to make payments to growers on time and that this action by the government will increase the liquidity in the sugar industry.

This was stated by Pakistan Sugar Mills Association Chairman Javed Kyani in a statement issued here. Despite floods in Sindh, sugarcane production was estimated to be 54 million tons and resultantly refined sugar production would be about five million tons during current season.

The PSMA chairman said that the millers have paid 100 per cent dues to the growers belonging to last crushing season, and have cleared outstanding dues. The millers are making efforts to pay price of sugarcane on time this season.

For this, the government has to accelerate process of buying 0.2 million tons of refined sugar to facilitate the growers. Javed Kiani said that the prices of refined sugar have come down by about 20 to 25 per cent this year in November compared to the same month last year because of surplus refining.

The price per kilogramme in November 2010 was about Rs80-90 and they have dropped to Rs62-66 during November 2011, he said.

Published in The Express Tribune, November 21^st, 2011.