Due to this price row, the crushing season is facing an inordinate delay, resulting in a price rise of sugar through out the province. PHOTO: FILE
The next season crop, wheat, cannot be sown on hundreds of thousands of acres in Sindh as the growers are refusing to harvest their ready sugarcane crop. Their main argument being that sugar mills are not offering them good rates.
Normally, the sugarcane harvesting season starts by mid October and wheat is sown on cleared out lands by the end of October. Sugar mills start their crushing season from November. However, the whole process this time is delayed as growers refuse to harvest their sugarcane crop in many areas; as a consequence many sugar mills are facing a no-cane situation.
The Sindh government has fixed an official procurement rate of sugarcane at Rs180 per 40 kilogrammes; however, the growers are not ready to accept it and demand a rate of Rs 220 per 40 kilogrammes. They argue that prices of all agri-inputs have risen and they cannot sell their yields at the throwaway price.
Due to this price row, the crushing season is facing an inordinate delay, resulting in a price rise of sugar through out the province. Sugar which was available at Rs54 per kilogrammes by October end is now being sold at Rs62 in urban areas and Rs65 per kilogrammes in rural areas. The most affected by this is the ordinary consumer who is suffering due to the price row between the growers and the millers.
It is feared that if this issue is not immediately resolved, it would be difficult to sow the wheat crop on 2 million acres of land. The growers of cotton and red chilies have already sown wheat on their vacant lands after harvesting the sugarcane crop but sugar caners remain firm on their cost issue. The provincial government should intervene into the matter in order to solve the problem in the interest of the growers, the millers and the general public.
Published in The Express Tribune, November 19th, 2013.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ