As sugar millers team up to exploit the sugarcane growers and offer them a price below the governments notified rates, the farmers have discovered a way out by making their own traditional sugar (Gur) which is offering them good returns.
Sugarcane growers are unwilling to sell their crops on credit after some of the sugar mill owners have yet to clear their dues pertaining to the previous year.
The mill owners have blocked payments despite the All Pakistan Sugar Mills Association (PSMA) assuring the federal government of clearing all dues.
According to the farmers, the private sugarcane purchasing centers that are run by middlemen and some by the employees of the mills are purchasing sugarcane on cash payment of Rs 150 per 40 kilogram (kg) against the support price of Rs 170.
While the announced support price of sugarcane was already below the expectations of the farmers, growers are also seeking an increase in the support price of sugarcane as the support price was not offering good returns.
As the growers seek release of previous year’s payments by the millers, they find themselves in need of cash for sowing of next crop.
“Some sugar millers are making cash payments, while many are purchasing sugarcane on credit,” said farmers while talking to The Express Tribune.
They said that the exploitation by the owners was among their normal practices every season as they know that the farmers have to sell their crops to clear their fields for sowing wheat crop.
The farmers, to overcome the issue, have started making Gur, while other growers are selling their sugarcane to the millers to vacant their fields for next crop of wheat.
The price of Gur is Rs2,100 per 40kg, which is paid in cash thus encouraging the growers for moving towards Gur markets after being unhappy with the price of sugarcane.
Shabeer Ahmed, a sugarcare grower, said that the implementation of announced sugarcane support price and last year’s arrears were prickly issues but government has been unable to resolve them.
“The millers enjoy a strong lobby and many of them are politicians, therefore no one will come to rescue the farmers,” added Ahmed.
“Despite agitation by the farmers, the millers are buying crops on credit.” Ahmed added that this ongoing trend was pushing the farmers to abandon cultivation of sugarcane crop.
Published in The Express Tribune, December 8th, 2013.
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